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Ethereum is inching closer to its all-time high and is trying to regain the $4,000 level. The second-largest cryptocurrency by market capitalization has faced skepticism throughout this cycle, with some analysts predicting it will underperform compared to previous bull runs. However, Ethereum has been steadily rising in recent weeks despite market uncertainty, surprising doubters.
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Glassnode’s key on-chain metrics reveal important trends that could drive further price appreciation. Ethereum whales have been actively accumulating since late November. This signals growing confidence among major holders who are positioning for a potential upside. Historically, whale accumulations often precede large price movements, suggesting a potential breakout in the short term.
While the market remains divided on the future direction of Ethereum, whether or not it can maintain its upward momentum near $4,000 will likely determine Ethereum’s performance in the coming weeks. A breakout of this key resistance level could open the door to new highs and further solidify ETH’s role as a leader in the ongoing bullish cycle.
Ethereum Mega Whale balance increases
Ethereum has experienced a modest but steady rise since November 5th, but it appears that the real fireworks are yet to be ignited for ETH. With the price of Bitcoin soaring and several altcoins outperforming expectations, Ethereum investors are looking for clear signs that a bull run in the second-largest cryptocurrency is imminent.
Key on-chain data shared on X by top analyst Ali Martinez provides interesting insights into the current state of Ethereum. Martinez highlighted that Ethereum whales (entities with large amounts of ETH) have been actively accumulating ever since the price crossed the $3,330 level.
Loading Ethereum Whale | Source: Ali Martinez of X
This accumulation trend suggests that smart money is bracing for what could be a big rally in the coming months. Historically, whale accumulations have often been a harbinger of strong price increases, as these large investors tend to anticipate big changes in the market before retail traders.
However, the story isn't entirely bullish. While the whale accumulation may be a sign of confidence, it also raises concerns about potential cattle traps. These large holders could quickly pivot and move their ETH holdings to other assets if market conditions change or if Bitcoin’s dominance stifles altcoin growth. be. Such a move could catch small investors off guard and lead to a sharp correction.
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In the case of Ethereum, sustaining above key levels like $3,800 while breaking through key resistance levels could be the catalyst needed to spark a true bull market. Until then, ETH remains a favorite on our watchlists, with a balance of possibility and uncertainty.
price test critical resistance
Ethereum (ETH) is trading at $3,950 and has been struggling to break above the key resistance level of $4,000 for several days. Despite this, prices remain resilient, indicating strong market support. $4,000 is a psychological barrier and an important resistance zone for the asset, so clearing this level is essential to confirm the continuation of the uptrend.
ETH test supply is $4,000 | Source: ETHUSDT chart on TradingView
If Ethereum fails to break through the $4,000 mark, we could expect a pullback towards the low demand zone around $3,500. This level has acted as strong support in recent weeks, providing a buffer during periods of increased selling pressure. A retreat into this area could create new buying momentum and set the stage for further highs.
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However, recent market trends suggest that Ethereum may be poised for a significant rally. A surge in Bitcoin price discovery and growing optimism towards altcoins has created a bullish environment. As whales continue to accumulate ETH, as evidenced by on-chain data, market participants are becoming increasingly confident in Ethereum’s ability to re-attempt and surpass all-time highs.
Featured image from Dall-E, chart from TradingView
