Ethereum Shows Signs of Recovery Amid Whales Accumulation and RSI Rebound, Potential for Price Gains Ahead

• Ethereum rebounds after the Bybit hack, yet it remains down 18% over the last 30 days, illustrating the ongoing volatility in the market.

• Recent data shows ETH’s RSI recovery to 58.6, signaling renewed buying pressure and potential for further price gains.

• Growing whale accumulation suggests an increase in institutional confidence, supporting a bullish outlook for Ethereum.

Ethereum shows resilience post-Bybit hack, marked by RSI recovery and increased whale accumulation, potentially paving the way for future price gains.

ETH’s RSI Has Recovered From the Recent Dip

Ethereum’s RSI has rebounded to 58.6, a clear recovery from the lows of 39.2 recorded during the aftermath of the Bybit hack that sharply impacted its market price.

This notable increase in the RSI reflects the regained buying momentum that Ethereum has experienced since the precipitous decline.

Such an upward movement in the RSI suggests that buying pressure has returned to the market, helping Ethereum’s price stabilize and possibly setting the stage for further increases if the momentum persists.

RSI, or Relative Strength Index, is a crucial momentum oscillator that gauges the speed and change of price movements. It operates on a scale from 0 to 100, with significant thresholds set at 30 and 70.

An RSI reading below 30 typically indicates an oversold condition, which can signal buying opportunities, whereas a reading above 70 suggests overbought conditions, hinting at possible price corrections.

Currently, with ETH’s RSI at 58.6, it resides within a neutral zone but with a lean toward bullish momentum. This positioning illustrates that Ethereum still possesses potential for growth before reaching overbought levels, which could contribute to further price appreciation as sustained buying interest prevails.

Ethereum Whales Accumulated After the Bybit Hack

The count of Ethereum whales – wallets holding a minimum of 1,000 ETH – has surged over the past month, increasing from 5,680 on January 25 to 5,828 on February 22.

This uptick marks the highest whale activity since December 2023, indicating renewed interest and accumulation among significant holders. The rise in whale addresses suggests that institutional investors and high-net-worth individuals are progressively building positions, with expectations of future price gains, particularly following the decrease in ETH values around the Bybit incident.

This accumulation by whales can lay a robust foundation for potential price increases for Ethereum.

Monitoring Ethereum’s whale activity is vital, as their buying and selling behaviors can notably sway the market.

When whales accumulate, it diminishes the circulating supply, which can spark price increases as demand confronts reduced availability. Conversely, significant sales from these holders can create downward pressure on prices.

At present, the growth in whale addresses reflects a bolstered confidence and bullish sentiment among large-scale investors.

Although current whale levels are the peak since December 2023, they remain relatively subdued compared to historical metrics, implying room for further accumulation. Should this trend sustain, it could lead to a prolonged upward trajectory in ETH price as demand potentially outweighs supply.

Will Ethereum Finally Rise Back Above $2,900?

The technical analysis of Ethereum’s EMA lines suggests a potential golden cross formation on the horizon. This pattern typically denotes a bullish trend and signals possible upward movement.

If this golden cross occurs, ETH could initially challenge a resistance level near its long-term EMA line around $2,876. A breakout past this threshold could pave the way toward a move to $3,020.

In the event that strong upward momentum continues, ETH might even target resistance as high as $3,442.

However, Ethereum has faced challenges in reclaiming levels above $2,900 in several recent attempts, indicating a degree of resistance and market indecision.

Should it fail to surpass this level again and a downward trend materializes, ETH’s price could test the support level at $2,551. Breaching this support could lead to a sharper decline, potentially dropping to $2,159.

Conclusion

The recovery of Ethereum after the Bybit hack is underscored by its improved RSI, coupled with growing whale accumulation indicating institutional confidence. As the crypto market navigates ongoing volatility, a significant breakthrough above the $2,900 resistance could signal renewed bullish momentum. However, maintaining vigilance regarding market trends and preparing for potential price corrections will be crucial for investors and traders.