The cryptocurrency is witnessing volatility, particularly with 's recent dip to $115,000. However, (ETH) shows a bullish structure that remains intact, indicating a potential move towards $4,000.
Over the past few weeks, new whale wallets have been aggressively accumulating ETH. Data reveals that since July 9, over 540,000 ETH have been acquired by these newly created wallets, emphasizing strong confidence among large investors.
market Dynamics Favoring ETH
has exhibited greater resilience than during this pullback phase. As struggles at new range lows, ETH maintains trading above the $3,500 support level. This strength may position it for an upward trend towards the $4K mark.
technical analysis shows that on the four-hour chart, ETH is holding above the 50-day exponential moving average (EMA). Additionally, it remains above the 200-day EMA on the one-hour chart, suggesting continued momentum across various time frames.
Analyst Byzantine General notes that ETH might be gearing up for a significant price movement. A breakout above the key resistance level of $3,750 could pave the way for reaching $4,000.
Whale Activity Indicates Strong Confidence
The aggressive buying behavior from whale wallets cannot be overlooked. A recent tweet highlights that fresh ethereum wallets have accumulated 74,207 ETH worth $273 million in just ten hours. This surge signifies heightened interest and confidence among large-scale investors.
Moreover, strategic accumulation by large corporations has nearly doubled Ether holdings in just four weeks. For instance, Bit Mine’s acquisition of 266,119 ETH has established it as one of the largest institutional holders of Ether with a total valuation exceeding $2 billion.
Short-Term Concerns Amidst bullish Sentiment
Despite these positive indicators, some technical signals suggest caution. Current data indicates a significant build-up of buy orders between the $3,000 and $3,400 range. This concentration could lead to a liquidity sweep before any potential rally resumes.
If ETH drops below the $3,500 level, it may revisit the fair value gap between $3,150 and $3,300 before recovering. Such a movement underscores the importance of watching price action closely in this volatile environment.
In conclusion, while ethereum's outlook remains positive amidst fluctuations affecting and altcoins, monitoring key support levels is crucial for investors looking to navigate these waters effectively.
