Ethereum Price Charges Above $3,500 Despite Declining Whale Interest: The Next ETH Price Level Is Here:
With the price of Bitcoin surpassing the $67,000 level, more and more investors are turning their attention to altcoins in hopes of further upside. The current trend in the market is in favor of buyers, with Ethereum in particular holding above the $3,500 level. Despite this upward trend, there has been a noticeable decline in whale participation in Ethereum as interest declines in key indicators. This decline in whale activity could potentially cause Ethereum’s price volatility to plummet, putting additional pressure on buyers.
Ethereum is facing mixed market sentiment
Over the past four hours, increased buying activity within the cryptocurrency market has pushed the price of Bitcoin past $67,000 and within 3.4% of its all-time high. This rise follows significant investment inflows into spot Bitcoin ETFs last week. Coinshares reports massive weekly inflows totaling $1.84 billion into digital asset investment products. Trading volume also surged past $30 billion, accounting for half of all Bitcoin global trading volume on major exchanges.
After Bitcoin’s significant price increase, Ethereum has seen increased buying interest and is maintaining its position above $3,500. However, IntoTheBlock’s data suggests interest from large investors, or “whales,” has declined. Large trading volume decreased from a high of 3 million ETH to a low of 1.3 million ETH. Reduced interest in whales despite rising prices could mean less volatility in the market, potentially putting pressure on investors to keep prices stable within certain resistance areas.
However, approximately 100 million ETH addresses are currently profitable, representing almost 90% of all holders. This could increase buyer confidence, encouraging investors to acquire more ETH in response to positive market sentiment. However, some analysts argue that the rapid rise may have pushed the market into overheated territory, suggesting that a correction is needed for the market to rise again, which could push the ETH price back towards support levels.
What’s next for ETH price?
Ethereum has been under selling pressure near $3,600, but the lack of significant downside suggests traders are buying on some dips. This shows a strong buying advantage for ETH near the resistance zone. At the time of writing, the price of ETH is trading at $3,550, up more than 2.5% from yesterday’s price.
Bullish traders in the market are once again attempting to break through the strong resistance of $3,600. If successful, the ETH/USDT trading pair could begin a new upward move, potentially heading towards $4,000 before consolidating around $4,200.
An upward trend in the moving average indicates that the market momentum is bullish. However, if the Relative Strength Index (RSI) remains in overbought territory for an extended period of time, the risk of a temporary retracement increases. Immediate support is found at $3,370 followed by the important $3K level.