Ethereum (ETH), recognized as the world’s second-largest cryptocurrency by market capitalization, is showing promising signs of regaining its upward trajectory after experiencing a significant price dip. The renewed optimism is largely fueled by investors and long-term holders who have been actively purchasing Ethereum during its recent price decline.
Crypto Whales Make a Significant Move with $28.5 Million ETH Purchase
In a notable development, Lookonchain, a blockchain-based transactions tracker, highlighted on X (formerly known as Twitter) that a group of four new crypto wallets, likely owned by whales, acquired a substantial 8,440 ETH valued at $28.43 million from the Binance exchange. This major acquisition took place during a time when Ethereum’s price was beginning to recover from a preceding decline.
Whales Begin Accumulating Ethereum Post-Market Rebound
The recent transaction, which took place in a short span of 30 minutes, indicates that these wallets are potentially interlinked, belonging to the same whale entity. This aggressive accumulation reflects a strategic move to capitalize on the market’s rebound. During a recent downturn, Ethereum’s price experienced a decline exceeding 22.5%. However, the cryptocurrency has since rebounded, reclaiming a crucial level after testing its vital support at the 200-day Exponential Moving Average (EMA), which stands at $3,100.
Current Price Momentum: A Closer Look
Currently, Ethereum is trading around $3,475, marking a price increase of over 1.75% within the last 24 hours. During this period, trading volume surged by 10%, underscoring increased participation from traders and investors eager to seize opportunities amid the market dip. Long-term holders and whales appear to be making the most of this buying window, significantly increasing their holdings.
Ethereum (ETH) Technical Analysis and Future Projections
In terms of technical analysis, Ethereum has successfully reclaimed its critical support level at $3,400. It recently formed a bullish pin bar candle at this support level, characterized by a long wick, which is a strong indicator of potential upward momentum in the days ahead. This formation suggests that the bulls are gaining strength, and the market sentiment is shifting in their favor.
Potential Upside for Ethereum
Based on recent price movements, if Ethereum breaches the $3,500 mark, there is a strong potential for the cryptocurrency to rise by 17%, potentially reaching the $4,000 milestone in the near future. The current market sentiment appears to be bullish, which could further bolster Ethereum’s upward momentum.
As Ethereum continues to exhibit bullish signs, market participants remain optimistic about its future performance. The combination of strategic buying by large investors and favorable technical indicators suggests that Ethereum could be on the brink of a significant rally.
