Ethereum Whales Have Not Joined the ETH Price Rally Yet, Is Further Upside Possible?
Amidst the current developments surrounding the possibility of spot Ethereum ETF approval, the Ethereum (ETH) price has risen by more than 30% in the last 2 days, surging above $3,800 levels. On-chain data shows that this is the most optimistic crowd sentiment on Ethereum since last September 2023.
Participation of Ethereum Whale is Expected
On-chain data provider Santiment reveals that the number of small Ethereum wallets holding 10 or less ETH has reached an all-time high of 121.74 million. In contrast, “smart money” wallets holding 10 to 10,000 ETH are down 5.8% over the past year, while big whale wallets holding over 10,000 ETH are down 10.6%.
Courtesy: Santiment
This clearly shows that major players have not yet joined this market rally. If so, it could easily lead ETH price to rise above $4,000, thus further targeting new all-time highs.
The recent rise in Ethereum prices is primarily due to the anticipation of Ethereum ETF approval and significant spot buying activity on Coinbase. While some of the big players such as Standard Chartered expect approval by this week, other market analysts believe it will take a few more weeks.
ETH Price Movement Ahead
As of the moment the article was published, Ethereum is trading at $3,758 with a market value of $452 billion. Ethereum price is approaching the higher time frame resistance at $3850-4050. Popular analyst CryptoAceBull stated that although demand for Bitcoin increased, its price dropped following the ETF news.
Similarly, while the Ethereum ETF approval will be positive in the long term and potentially push ETH to $12k in a year or two, short-term forecasts point to a possible rejection in this resistance zone with a potential test of $3600. Consolidation near $3900-4000 could push ETH to a new all-time high.
Courtesy: CryptoAceBull
The analyst also added that the ETH/BTC pair is approaching its previous consolidation level. If it stays above 0.055, altcoins may perform well in the short term. However, a rejection at this level could trigger a short-term downtrend in altcoins. The analyst predicts that ETH/BTC will bottom out in the second quarter, potentially leading to a significant move in the third and fourth quarters.
Ethereum co-founder joe Lubin, who is also the founder of crypto infrastructure company ConsenSys, stated that the approval of the spot Ether ETF could lead to a “floodgate” of demand for Ethereum. “There will be a fairly large amount of natural, pent-up pressure to buy Ether through ETFs,” he said while speaking to DLNews.
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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