In recent months, Ethereum (ETH) has demonstrated remarkable performance, reaching a pivotal resistance level above $3,953. This crucial point could either postpone or affirm the ongoing bullish sentiment surrounding Ethereum. As the largest altcoin in the market, Ethereum boasts a fully diluted valuation of approximately $476 billion and maintains a daily average trading volume of around $30 billion. Notably, Ethereum recently confirmed its bullish breakout from a prolonged multi-year falling logarithmic trend.
Despite this achievement, Ethereum’s price might consolidate in the short term to attract more buyers. This comes as Bitcoin (BTC) has captured attention with an impressive rally beyond $105k earlier today. Consequently, the eagerly anticipated altseason may take longer to gain traction as large-cap altcoins require time to draw new liquidity due to a slow transition of cash from Bitcoin investments.
Ethereum Whale on the Move
Recent on-chain data analysis from Glassnode reveals a significant increase in the number of Ethereum whale addresses holding balances exceeding 10,000 ETH. This surge in whale activity coincides with a notable decline in Ether supply on centralized exchanges. In fact, over 95,000 ETH units have been withdrawn from these exchanges in the past week alone.
Additionally, the US spot Ether ETFs have experienced substantial inflows, amassing over $2 billion in net cash within the last three weeks. BlackRock’s ETHA has led the charge, recording the highest weekly cash inflow of approximately $854 million last week. These developments underscore the growing interest and confidence in Ethereum among institutional investors.
What Next?
With rising demand for Ether, particularly among institutional investors seeking to diversify their crypto portfolios, bullish prospects for Ethereum have significantly increased. From a technical standpoint, ETH’s price is targeting $5,250 in the near term, aligning with the daily Fibonacci extension.
However, the confirmation of a parabolic rally for Ether hinges on the weekly Relative Strength Index (RSI) surpassing the 70 percent mark—a level it last reached earlier this year. This technical indicator will be pivotal in determining the next phase of Ethereum’s price trajectory.
As Ethereum continues to capture the attention of investors and analysts alike, the coming weeks will be crucial in determining its future market performance. Whether the altcoin will break through its current resistance level or require further consolidation remains to be seen. Nonetheless, the ongoing developments and market dynamics suggest that Ethereum maintains strong potential for growth and increased adoption in the rapidly evolving cryptocurrency landscape.
