Ethereum (ETH) whales are making significant purchases, igniting discussions about a potential price surge above $2,800 and possibly toward $3,500.
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ETH whales have collectively bought over 1 million ETH in the last 30 days, with a notable $12.86 million withdrawn from Kraken recently.
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Key liquidation clusters around $2,607 and $2,716 are anticipated to trigger market volatility, with $811 million in longs and $728 million in shorts in play.
As Ethereum [ETH] displays signs of a breakout, recent whale activities signal renewed momentum. With bullish sentiments on the rise, both on-chain indicators and technical analyses suggest an impending rally.
Ethereum whales on buying spree
On May 28th, crypto analyst Ali Martinez highlighted that whales are actively purchasing, accumulating over 1 million ETH over the past month. This activity occurs amid ETH’s sideways price movement, indicating calculated buying rather than reactive measures.
Source: X
Further evidence from the blockchain transaction tracker Onchain Lens shows ongoing accumulation, as recently two newly created wallets withdrew 4,838 ETH, valued at $12.86 million, from Kraken. This persistent purchase activity strengthens ETH’s market position.
Expert bullish view on Ethereum
With the consolidation phase extending beyond 17 days, analysts at CryptoQuant noted the emergence of a bullish flag pattern, which historically paves the way for significant upward movement once broken. This pattern is crucial as ETH remains above its 200-day Exponential Moving Average (EMA), which acts as a vital long-term support level.
An analyst posited that a successful breakout from this pattern may initiate a rally, propelling the price toward $3,000 to $3,500, potentially igniting broader altcoin market movements.
Ethereum price action and key levels
In light of these expert predictions, COINOTAG conducted a thorough evaluation of ETH’s daily chart. Currently, the price is consolidating near the crucial resistance range of $2,700 to $2,800, a level that has seen multiple rejections in the past.
It’s essential for traders to recognize that merely breaking out from consolidation may not guarantee an upward trend. A sustained lift will require ETH to decisively surpass this resistance level, thereby exiting the current consolidation phase.
Source: TradingView
To confirm a genuine breakout, ETH would need to close a daily candle above $2,870. A successful breach could offer a substantial price increase of around 22%, potentially leading to a target of $3,530. Conversely, failure to overcome the $2,870 resistance could prolong the current consolidation.
Liquidation pressure could shake things up
Market sentiment reflects a substantial over-leverage, with critical liquidation points set at $2,607 on the lower end and $2,716 on the higher. These key price levels represent battlegrounds for both bulls and bears, with $811 million worth of long positions and $728 million worth of short positions concentrated around these thresholds.
Source: CoinGlass
Conclusion
The recent surge in whale activity and significant accumulation could be pivotal for Ethereum’s price trajectory. With critical resistance levels to surpass and liquidations looming, traders must remain vigilant. The outcome of Ethereum’s price action in the coming days will be essential in determining the market’s direction, making this an exciting period for investors and traders alike.
