Ethereum Surges Past $4,600 as Whales Accumulate While Retail Traders Show Disbelief
Ethereum (ETH) has shown amazing vigor, rising more than 8% in the last 24 hours to stay over the $4,600 level. This brings the world's 2nd
Quick overview
- Ethereum has surged over 8% in the last 24 hours, trading around $4,676, just 5.53% below its all-time high.
- Retail traders are skeptical about ETH's rise, allowing institutional investors and whales to accumulate more assets.
- Technical analysis suggests that a breakout above $4,680 could lead to a rapid increase towards the $4,800 target.
- Despite strong spot demand, Ethereum faces competition as its total value locked has decreased by 7% over the past month.
Ethereum ETH/USD has shown amazing vigor, rising more than 8% in the last 24 hours to stay over the $4,600 level. This brings the world’s second-largest cryptocurrency tantalizingly near to its all-time high of $4,878 established in November 2021. ETH is currently trading at about $4,676, which is only 5.53% below its all-time high. This has led to anticipation that it may soon break out to new record highs.
Ethereum Whale Accumulation Drives Rally Amid Retail Skepticism
Santiment, a platform that tracks crypto sentiment, says that something interesting is happening in the Ethereum market. As ETH rises to new highs, most retail traders are still doubtful, which is making it easier for institutional investors and whales to take advantage of retail selling pressure.
“Traders have shown FUD [fear, uncertainty, and doubt] and disbelief as the asset makes higher and higher prices,” Santiment said, pointing out that there is a lot more gloomy comments on social media than positive input. This contrarian signal has traditionally suggested that the market will keep going higher, since markets typically move in the opposite direction of what ordinary investors expect.
The sentiment study shows that smaller traders are actively selling their assets, and larger market participants are buying them up. This trend of accumulation by “key stakeholders” shows that there isn’t much opposition to ETH breaking through to new all-time highs in the near future.
ETH/USD Technical Analysis Points to $4,800 Breakout Target
Ethereum has good support in the $4,200–$4,400 range from a technical point of view, and the present price action is making a bullish trend line. Technical expert Aayush Jindal points out a few important resistance levels that could lead to the next big move.
The first level of resistance is $4,620, then $4,650, and finally $4,680, which is the most important level. A clear break over $4,680 might start a quick rise toward $4,750, with the ultimate goal being the psychologically important $4,800 mark. Some hopeful traders, like crypto analyst “Inmortal,” are setting even higher goals, saying that ETH might hit $10,000 as it “escapes the force of gravity.”
The hourly MACD is gaining strength in the bullish zone, and the RSI is above the neutral 50 mark, which supports the optimistic perspective. The 100-hourly Simple Moving Average gives more support at these levels.
Ether Derivatives Data Reveals Complex Market Dynamics
Even if the spot price is doing well, the futures markets tell a more complicated scenario. The total open interest for ETH futures has hit a record high of $60.8 billion, up from $47 billion a week ago. But this rise is mostly because prices went up, not because new leveraged positions were opened. Open interest in ETH terms is still 11% below the peak on July 27.
The ETH perpetual futures annualized premium is now at 11%, which is considered neutral ground. Even though the price has gone up 32% in the last 10 days, this relatively small premium shows that leveraged long interest hasn’t returned to levels that are characteristic of previous bullish cycles.
Fundamental Challenges and Competition Concerns
Ethereum is seeing more competition, even though spot demand is still high, as shown by continuous ETF inflows. Over the past 30 days, the total value locked (TVL) on the Ethereum network has reduced 7% to 23.3 million ETH. Weekly base layer fees have also dropped 27% to $7.5 million.
Ethereum’s weekly fees are currently lower than those of competitors like Solana ($9.6 million) and Tron ($14.3 million). This raises issues about how well the network is being used and how competitive it will be in the long run.
Ethereum Price Prediction and Outlook
ETH looks like it is ready to try to break out toward $4,800 in the near future, based on current technical patterns and market conditions. The fact that whales are buying, normal investors don’t believe it, and there is strong technical support all point to a low danger of a drop and a high chance of a rise.
$4,525, $4,400, and $4,350 are important support levels to keep an eye on. $4,620, $4,680, and $4,750 are important resistance levels that will determine the direction of the next big move. If ETH breaks through the $4,750 resistance, it is very likely that it will test the $4,800-$4,840 level, which might lead to new all-time highs.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save