Over the past week, some of the largest Ethereum whales, those holding between 1 and 10 million ETH, have accumulated a staggering 100,000 ETH, valued at a staggering $230 million.
This active buying position from influential investors highlights their unwavering confidence in the long-term potential of Ethereum, even in the face of recent price corrections.
Despite the recent downward price trend, indications of recent Ethereum whale activity suggest continued confidence in the market’s continued bullishness.
Rich traders hoard millions in Ethereum
After a promising start in the first days of December 2023, various cryptocurrency assets, including Ethereum, have shown strong performances.
Crypto whales have reportedly devoured hundreds of millions of dollars worth of Ether, the leading altcoin, over the past seven days, according to a highly respected expert.
– Ali (@ali_charts) December 16, 2023
On social media site
Price increases are usually the result of strong buying demand from wealthy investors, and the recent whale accumulation indicates that this is the case.
On December 7, Santiment Feed associated a whale accumulation pattern with ETH’s rise, which peaked at a 19-month high above the price of $2,350.
Typically, whale activity affects the prices of cryptocurrency assets. Recent activity among ETH whales indicates that a price rally could be imminent.
Ethereum currently trading at $2,235 on the daily chart: TradingView.com
Although there is currently strong buying pressure in the market, caution is advised as the bottom may not have been reached yet.
RSI and stochastic neutral, uncertainty on Ethereum
Both the Relative Strength Index (RSI) and Stochastic are currently in neutral territory, according to data from CryptoQyant. Uncertainty remains about the true bottom of the market, despite buying activity.
We looked at the liquidation heat map to try to estimate possible support levels for Ethereum. Based on the analysis, there was an increase in liquidations in the range of $2,140 to $2,170.
This implies that before Ethereum price begins its next bullish rebound, it is likely to fall below these levels. But in the event of a rally, Ethereum should overcome an important resistance level near $2,380.
Short-term price changes in Ethereum are difficult to predict due to the complex interaction of market indicators and liquidation data.
Meanwhile, the $2,148 price appears to be the asset’s near-term support, according to an analysis of ETH’s daily price chart. To increase the likelihood of another rise before the end of 2023, bulls hope that this level holds.
If there is a breakout below, it may indicate the construction of a more complex bullish continuation chart pattern, similar to a bull flag. Over shorter time frames, this trend could resemble a descending channel and undermine expectations of another significant rise in 2023.
Ether and other cryptocurrency values are sensitive to a number of external variables, including broad macroeconomic sentiment. Ethereum is already up 81% year to date at its current price.
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