Whales Could Propel
Ethereum (ETH) Price to $3,500
Ethereum’s (ETH) price is encountering a bullish scenario that could propel it to a multi-month high, which is being aided by whales.
However, for this to happen, ETH would first need to secure a key price level as support.
Ethereum Investors Push for Profit
Ethereum’s price is experiencing a significant boost due to the bullish activity of whales. These large investors have been accumulating ETH heavily over the past week, enabling the cryptocurrency to break out of its descending wedge.
Addresses holding between 100,000 and 1 million ETH have added over 390,000 ETH, valued at $1.26 billion, increasing their total holdings to 19.94 million ETH. This buying spree occurred in the past week alone.
Historically, these investors have significantly influenced Ethereum’s price through their actions. Their accumulation tends to drive prices up, while their selling often leads to declines, making them a key group in the market.
While whale activity is influential, retail investors also play a crucial role. Their holdings of millions of ETH drive both recoveries and dips in the market. Currently, their activity is contributing to the price recovery, with 5.82 million ETH on the verge of becoming profitable.
According to the Global In/Out of the Money (GIOM) indicator, this supply was acquired at prices between $3,000 and $3,163. This $18.65 billion worth of ETH is keeping both investors and whales optimistic. With a likely target of a 30% price rise, reaching $3,163 seems imminent.
ETH Price Prediction: Will the Breakout Result in a Rally?
At the time of writing, Ethereum’s price is $3,099, sitting above the key support level of the 23.6% Fibonacci Retracement at $3,031. This level was breached as the altcoin broke out of its descending wedge, which has been forming since early March.
A descending wedge is a bullish reversal pattern marked by converging trendlines sloping downward. A break through the upper trendline typically signals a potential upside breakout.
Based on this pattern, the likely target for ETH is $3,873, suggesting a potential 30% rally. However, a more practical target is $3,336, aligning with the 38.2% Fibonacci Retracement level.
If Ethereum loses the 23.6% Fibonacci support, it could invalidate the bullish outlook. This level is also considered the bear market support floor, and a drop below it would increase bearish momentum, potentially driving the price down to $2,539.
