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Ethereum’s recent surge driven by whale accumulation raises the question: can ETH reach the coveted $5,000 mark amid mixed signals?
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Notably, a significant rally in October saw ETH’s price rise alongside strong buying pressure from large investors, which may indicate a bullish trend.
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According to COINOTAG, “whale activity is often a precursor to price movements, highlighting the importance of monitoring their behavior closely.”
Explore how Ethereum’s whale accumulation could influence its price trajectory towards $5,000 amid fluctuating network growth. Read more!
Ethereum whale accumulation drives bullish sentiment
Recent reports from Santiment highlight a noteworthy trend among Ethereum investors, where addresses holding between 1,000 and 10,000 ETH accumulated a whopping total of 620,000 ETH from late July to early August, aligning perfectly with Ethereum’s price rally from $2,400 to $4,000. This phase of accumulation demonstrates a growing confidence in the long-term potential of Ethereum as it navigates the ever-changing crypto landscape.
Source: MAXPAIN on X
Continuing the trend, whales recently added another 330,000 ETH to their holdings, thereby reinforcing their confidence in the cryptocurrency as its price stabilizes around $3,193. Observations reveal that the consistent pattern of whale activity often precedes significant price rallies, further affirming a bullish outlook for Ethereum.
Network growth and activity show mixed signals
Examining Ethereum’s network dynamics, while the number of new addresses peaked at 181,000 in December, a subsequent drop to only 52,200 new addresses by January 23 highlights a potential slowdown in adoption that could pose challenges for sustained price growth.
Source: Santiment
Despite this downturn in new address creation, the overall network activity shows resilience, bolstered by the strong on-chain fundamentals and ongoing whale interest. Nevertheless, to sustain upward momentum and achieve projected price targets, Ethereum must work to revive its network growth.
Ethereum technical analysis: Key levels to watch
According to COINOTAG’s technical analysis, Ethereum’s price currently hovers around $3,193, recently experiencing a 1.48% drop, which has put its critical support at $3,044.99 (the 0.786 Fibonacci retracement level) to the test. Furthermore, the 50-day moving average of $3,507.71 is viewed as a significant resistance, while the 200-day moving average at $2,984.25 acts as a sturdy support foundation.
Source: TradingView
The Elliott Wave theory indicator, while currently reflecting a reading of -3.67, indicates mild bearish momentum in the short term. Despite this, the extensive interest from whales provides an overall bullish perspective, dependent on maintaining the prevailing support levels.
Can Ethereum reach $5,000?
The journey for Ethereum to potentially hit the $5,000 mark hinges on various critical factors such as continuous whale accumulation, network growth dynamics, and prevailing market conditions. The notable whale stockpile of over 950,000 ETH signals robust investor confidence, yet uncertainties stemming from slower network growth and the resistance encountered at pivotal technical levels present challenges that may delay this climb.
Investors should remain vigilant to macroeconomic conditions and changes in market sentiment, which are vital in influencing ETH’s short-term dynamics. As Ethereum holds steady at approximately $3,193, its capability to breach resistance points while sustaining whale engagement will play a decisive role in its pursuit of the $5,000 benchmark in the ensuing months.
