Ethereum’s Bullish Momentum
Ethereum (ETH) has been making headlines with its recent price movements. After showcasing an impressive performance mid-week, ETH has been developing a bullish pennant pattern on the hourly chart. The large-cap altcoin, with a fully diluted market valuation of approximately $432 billion, rebounded from a significant support level above $3,542 within the past 24 hours. As of early Friday during the Asian trading session, Ethereum was trading around $3,595.
Bitcoin’s Influence on Ethereum’s Rally
With Bitcoin bulls reigniting the initial rally towards the $100k mark, Ethereum is also positioning itself to reach new multi-year highs. The altseason is gaining momentum, with Bitcoin dominance indicating a possible reversal from its rising trend. This scenario sets a favorable stage for Ethereum’s price to continue its upward trajectory.
Ethereum’s Whales on the Move
The Ethereum network has witnessed a surge in whale activities, coinciding with a notable increase in stablecoin balances. On-chain data reveals significant movements by two major Ether whales in the past 24 hours. Recently, Jeffrey Wilcke, Ethereum’s cofounder, transferred 20,000 ETH, valued at over $72 million, to the Kraken exchange. Following this, Winslow Strong, director of the Qualia Research Institute, deposited 9,380 ETH, worth approximately $33.7 million, to Coinbase.
Institutional Interest in Ethereum
Despite these sales, the US spot Ether ETFs have shown increasing demand from institutional investors. A prominent whale has invested $64 million to acquire nearly 20,000 ETH from the Bybit exchange over the past fortnight, indicating a strong institutional interest in Ethereum.
Midterm Target
Looking at Ethereum’s price trajectory, if ETH emulates its previous cycles, it might reach unprecedented levels. The introduction of Ethereum ETFs and the growing interest from institutional investors are significant factors contributing to this bullish outlook. Chart analyses suggest that Ethereum’s price could target $3,911, aligning with the 2.618 Fibonacci Extension on the four-hour chart.
Support and Resistance Levels
In the event of a bearish sentiment, Ethereum is expected to find strong support above $3,285, a level it has rebounded from three times over the past week. This support level is crucial for maintaining the bullish momentum in the short to medium term.
Market Picture
As November draws to a close, Ethereum’s volatility is anticipated to persist in the remaining weeks of the year. The altcoin’s Open Interest (OI) has surged to a new all-time high, surpassing $24 billion, indicating increased demand from traders experiencing FOMO (Fear of Missing Out).
Potential Liquidations
According to market data analysis by Coinglass, if Ethereum’s price reaches $4,000, approximately $850 million could be liquidated from the ETH market. This highlights the significant market interest and potential volatility surrounding Ethereum’s price movements.
