Ethereum (ETH) is experiencing a surge in interest from investors and traders, signaling a potential breakout. On September 19, 2024, the on-chain analytics firm Lookonchain reported that a significant Ethereum Whale made a substantial purchase of 2,117.7 ETH, valued at $5.17 million, as the cryptocurrency’s price surged.
Ethereum Whale Big Bet Amid Price Rally
Recent data indicates that this whale is bullish on ETH through circular borrowing. Notably, this whale had previously liquidated a considerable amount of 6,078 ETH, worth $14.7 million, when the market crashed on August 5, 2024. This whale’s activity showcases a pattern of taking significant risks, often resulting in substantial losses.
In the past six months, this whale has gone long on ETH five times and faced liquidation four times, resulting in a loss of over $13 million. However, given the recent breakout and increasing interest from investors and traders, there is a possibility that the whale may recover their losses.
Ether Price Performance and Whale’s Recent Activity
In addition to the aforementioned whale’s massive purchase, on September 18, 2024, another whale acquired 5,660 ETH, valued at $13.1 million, at an average price of $2,316. This trend of accumulation by whales indicates a potential major rally on the horizon for Ethereum.
Currently, ETH is trading near $2,470, reflecting a price surge of over 6% within the last 24 hours. During this period, trading volume increased by 16%, highlighting heightened participation from traders and investors amid ongoing price rallies.
Ethereum Technical Analysis and Upcoming Levels
Expert technical analysis suggests a bullish outlook for ETH, despite it trading below the 200 Exponential Moving Average (EMA) on a daily time frame. The 200 EMA is a critical technical indicator used to determine the asset’s trend direction.
The recent breakout of a strong descending trendline that ETH has been facing since July 2024 is a potential reason for this bullish sentiment. However, this breakout will only be confirmed if ETH closes its daily candle above the $2,485 level. Should this occur, there is a strong possibility that ETH could reach the $2,800 level in the coming days.
Bullish On-chain Metrics
Complementing the technical analysis, on-chain metrics also indicate a bullish sentiment. According to Coinglass, the ETH long/short ratio currently stands at 1.027, suggesting a positive market outlook among traders. The data reveals that 51% of top traders hold long positions, while 49% hold short positions.
This bullish outlook will remain valid only if ETH successfully closes above the $2,800 level. Failure to do so may result in a setback for the cryptocurrency.
