Ethereum (ETH) has gained 20%, which has sparked optimism among investors. But, there is still some uncertainty about whether the current uptrend will continue.
Ethereum Whales Resume Activity
Ethereum whale activity has increased significantly, demonstrating a resurgence of confidence among large investors in the market. The number of addresses holding more than $100,000 worth of ETH has grown by 17%, while those holding more than $1 million have increased by 19%.
These increases reflect growing confidence in the cryptocurrency’s future price performance, with whales likely anticipating further gains.
This increase in whale participation is often a bullish sign, as large investors are generally seen as market stabilizers, reducing volatility by holding their assets for the long term. As such, as whales consolidate their positions, ETH’s stability may improve, which would add resilience to the recent rally.
Ethereum Whale Addresses. Source: Glassnode
However, the overall momentum is reaching a pivotal point, with technical indicators suggesting a possible reversal. The Relative Strength Index (RSI), a key indicator of overbought or oversold conditions, is close to entering the overbought zone.
Historically, Ethereum has experienced price reversals after brief spikes in this territory, although it has occasionally sustained extended stays without immediate pullbacks. Given the current market conditions, a breach of the overbought zone on the RSI could lead to a price correction.
RSI do Ethereum. Fonte: TradingView
Read more: Ethereum ETFs – Understand what they are and how they work
Price prediction
Ethereum price is up 20% in three days, currently trading at $2,911. The cryptocurrency is attempting to establish the 0.618 retracement level at $2,899 as support. Holding this support level would strengthen the upward momentum, potentially preventing a trend reversal.
If it can secure $2,899 as a support floor, a rise to $3,000 and beyond could be possible. This level, often seen as support in a bull market, could provide the necessary foundation for a price recovery.
Furthermore, successfully maintaining this position would boost investor confidence and signal a more optimistic outlook.
Ethereum Price Analysis. Source: TradingView
However, failure to close above $2,899 could set the stage for a potential pullback. Coupled with profit-taking among short-term holders, Ethereum’s price could drop to $2,745. Such a drop would invalidate the bullish thesis and indicate a possible shift to short-term bearish sentiment among investors.
Ethereum's price has seen a strong rally recently, hitting a three-month high after breaking out of a prolonged consolidation range it had been stuck in since August.
This 20% increase has sparked optimism among investors, but there is still some uncertainty about whether the uptrend will continue without a reversal.
Ethereum Whales Resume Activity
Ethereum whale activity has increased significantly, demonstrating a resurgence of confidence among large holders. The number of addresses holding more than $100,000 worth of ETH has grown by 17%, while those holding more than $1 million have increased by 19%. These substantial accumulations by high-value addresses reflect growing confidence in the future price performance of Ethereum, with whales likely anticipating further gains.
This increase in whale participation is often a bullish sign, as large investors are generally seen as market stabilizers, reducing volatility by holding their assets for the long term. As these significant holders consolidate their positions, Ethereum’s price stability could improve, adding resilience to the recent rally.
Ethereum Whale Addresses. Source: Glassnode
Ethereum’s overall momentum is reaching a pivotal point, with technical indicators suggesting a possible reversal. The Relative Strength Index (RSI), a key indicator of overbought or oversold conditions, is close to entering the overbought zone.
Historically, Ethereum has experienced price reversals after brief spikes in this territory, although it has occasionally sustained extended stays without immediate pullbacks. Given the current market conditions, a breach of the overbought zone on the RSI could lead to a price correction for Ethereum.
Ethereum RSI. Fonte: TradingView
ETH Price Prediction: Securing Supports
Ethereum price has increased by 20% over the past three days and is currently trading at $2,911. The crypto is attempting to establish the 61.8% Fibonacci Retracement level at $2,899 as support. Holding this support level would strengthen ETH’s upward momentum and potentially prevent a reversal.
If Ethereum can secure $2,899 as a support floor, a rise to $3,000 and beyond could be possible. This level, often seen as support in a bull market, could provide the necessary foundation for ETH’s price recovery. Successfully holding this position would boost investor confidence and signal a more optimistic outlook.
Ethereum Price Analysis. Source: TradingView
However, failure to close above $2,899 could set the stage for a potential pullback. Coupled with profit-taking among short-term holders, ETH could drop to $2,745.
Such a decline would invalidate the bullish thesis and indicate a possible shift to short-term bearish sentiment among investors.
The item Ethereum (ETH) is up 20%: could the price rise even more? was first seen on BeInCrypto Brasil.
