Ethereum (ETH) has been on a remarkable journey over the past couple of months, reaching a significant resistance level above $3,953. This level could either act as a barrier to the ongoing bullish trend or serve as a confirmation of further upward movement. With a fully diluted valuation of approximately $476 billion and a daily trading volume of around $30 billion, Ethereum has successfully broken out of a multi-year downward trend.
Despite its recent gains, Ethereum’s price may experience a temporary pause to attract more buyers. This comes as Bitcoin (BTC) continues to dominate the spotlight, recently surpassing $105k. As a result, the much-anticipated altseason may take longer to materialize, as large-cap altcoins struggle to attract new liquidity, with funds slowly transitioning from Bitcoin.
Ethereum Whales on the Move
On-chain data from Glassnode indicates a rapid increase in the number of Ethereum whale addresses holding over 10k ETH. This surge in whale activity coincides with a decrease in the supply of Ether on centralized exchanges, with over 95k ETH withdrawn in the past week alone.
Institutional investors are showing a growing interest in Ether as a means to diversify their portfolios. U.S. spot Ether ETFs have witnessed over $2 billion in net inflows over the last three weeks. The BlackRock-led ETHA ETF has been particularly noteworthy, with a record weekly inflow of approximately $854 million last week.
What Next?
With mounting institutional demand and a robust technical setup, Ethereum’s price is eyeing a target of $5,250 in the near future, based on the daily Fibonacci extension.
To maintain the momentum of the rally, Ethereum will need to confirm a breakout, with the weekly Relative Strength Index (RSI) surpassing 70%—a level not seen since earlier this year.
In conclusion, Ethereum is in a bullish position, poised for further growth in the coming days. As institutional interest continues to rise and technical indicators remain strong, Ethereum’s price outlook remains positive. Investors and traders should keep a close eye on key resistance levels and market developments to capitalize on potential opportunities in the crypto space. Stay informed with the latest news, analysis, and trends in the world of cryptocurrency to make informed investment decisions.