Ethereum Eyes $5,000 Breakthrough as Whales Accumulate $118M and Bitcoin Tests New ATH
Ethereum is getting ready for a big price jump since the cryptocurrency has stayed stable above the important $4,500 level. This is thanks
Quick overview
- Ethereum is poised for a significant price increase, remaining stable above the crucial $4,500 level due to substantial institutional inflows and whale accumulation.
- The recent Bitcoin rally has shifted market favor towards Ethereum, with analysts predicting potential outperformance as it approaches its previous all-time high.
- Massive inflows into Bitcoin and Ethereum ETFs indicate strong institutional confidence, with Ethereum seeing a reversal of prior outflows.
- Technical indicators suggest bullish momentum for Ethereum, with potential targets of $4,650 and beyond if it breaks through key resistance levels.
Ethereum ETH/USD is getting ready for a big price jump since the cryptocurrency has stayed stable above the important $4,500 level. This is thanks to huge institutional inflows and strategic whale accumulation that have put billions into the market in the last week.
Bitcoin’s Rally Sets Stage for Ethereum’s Next Phase
As the bull market starts its second phase, the market is starting to favor Ethereum more and more after Bitcoin’s BTC/USD historic rise to a new all-time high of $125,559. Michaël van de Poppe, a well-known crypto analyst, says that this change has historically come before big Ethereum outperformance. The leading altcoin is now in a position to test and possibly break its previous all-time high.
The ETH/USD pair has made important technical progress by breaking through many lower high resistance levels that had been holding back its upward momentum. This breakthrough has put Ethereum right in the middle of a breakout zone, and on-chain data shows that the prognosis is getting more bullish as Bitcoin’s rise makes it easier for altcoins to go up in value.
Massive Whale Accumulation Signals Strong Conviction
Last week, combined Bitcoin and Ethereum ETFs saw a historic $4.5 billion in inflows, which is the strongest sign of institutional confidence. Spot Bitcoin ETFs brought in $3.24 billion, the most money that has come in in a week this year. Spot Ethereum ETFs, on the other hand, brought in $1.30 billion in new money, reversing prior outflows.
Whale activity has grown a lot outside of institutional channels. On-chain analytics showed that a new wallet took 26,029 ETH worth over $118 million from Kraken, and another wallet took 620 BTC worth $76 million from Binance. These big moves into self-custody are calculated moves by smart investors who expect prices to go up even more.
Bitcoin has seen the most people leave exchanges, with about 170,000 BTC withdrawn in the last 30 days. This has brought exchange balances below 2.85 million BTC for the first time since January 2021. This supply shock dynamic usually comes before big price increases.
ETH/USD Technical Analysis: Bulls Control Key Support Levels
Ethereum is currently trading at $4,547, which is a little range after rising more than 5% from recent lows. The cryptocurrency has been stable above the $4,500 mark, which is significant for the mind, and its 100-hourly Simple Moving Average. A positive trend line connects these two levels and supports the price above $4,490.
Technical indications support the idea that the market is going up. The hourly MACD shows that the momentum is getting stronger in the positive range, and the RSI has gone over the neutral 50 mark, which means that purchasing pressure is getting stronger. Ethereum just touched $4,616 before entering its current consolidation phase. It is still far above the 23.6% Fibonacci retracement line of its recent climb from $4,094.
Ethereum Price Prediction: Path to $5,000 and Beyond
The immediate resistance zone is between $4,560 and $4,620. If the price breaks above $4,620, it will probably go quickly toward $4,650, with short-term targets of $4,720 and $4,800. Analysts say that if the present accumulation tendencies continue and ETFs keep streaming in, Ethereum might reach new all-time highs above $5,000 in the next few weeks.
Traders should, however, keep an eye on important support levels. If the price doesn’t break through the $4,620 resistance, it might go back down to the $4,500 support level, where there is strong downside protection at $4,480 (trend line support) and $4,440. If Ethereum breaks below these levels, it could drop below $4,350 or possibly $4,250 before going back up.
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