In the volatile crypto market, altcoins have sparked excitement, with Ethereum surpassing $3,000 before retreating below. Despite Bitcoin's sideways movement, Ethereum price recent surge highlighted its potential. Currently priced at 3,025.93, Ethereum's 3.91% 24-hour change reflects its market resilience. With a market capitalization of $363.8B, Ethereum's fluctuating value poses questions about its future trajectory. This year alone, Ethereum has experienced a 28.57% change, showcasing its ongoing appeal to investors. As the crypto landscape evolves, Ethereum's price movements barometer market sentiment, influencing broader market trends.
Ethereum's Price Correction: A Technical Analysis
Ethereum's price surged above the crucial $3,000 resistance level but faced strong selling pressure, resulting in a correction. The crypto price hit a new multi-week high of around $3,032 before retracing lower, mirroring Bitcoin's price action.
The decline saw Ethereum dropping below $3,000 and $2,950, finding support near $2,865. The bulls defended the $2,868 level, leading to a minor recovery. Currently, Ethereum is trading above $3,025 and the 100-hourly Simple Moving Average, indicating a positive bias.
The immediate resistance lies near $3,000, followed by the $3,065 zone. A successful break above $3,065 could trigger a fresh rally toward the $3,033.09 resistance. Further gains might open the doors for a test of $3,220. The overall trend for Ethereum remains bullish, supported by the recent break above $3,000. However, traders should remain cautious as the cryptocurrency market can be highly volatile. Monitoring key levels and market developments is crucial for making informed trading decisions.
Ethereum whale accumulation:
A prominent cryptocurrency whale, known as 0x7a9 and tracked by blockchain analytics firm Spot On Chain, has recently made substantial acquisitions of Ethereum (ETH) totaling $185.5 million over the past three days. The buying spree notably involved the purchase of 13,526 ETH valued at approximately $39.85 million.
Individual transactions revealed significant moves, including the withdrawal of 10,136 ETH (around $29.85 million) from the exchange Binance. Additionally, the whale acquired 3,390 ETH in exchange for 10 million USDT on the decentralized exchange 1 inch. The whale's activity also extended to withdrawing an additional 40 million USD from Binance, sparking speculation about potential further ETH acquisitions.
This strategic accumulation of ETH whale by a single entity underscores growing confidence in Ethereum as a leading digital asset and raises questions about its potential price impact. With Ethereum currently trading at around $3,000, the actions of such influential market participants are closely monitored for their potential effects on the market.
Altseason Alert: Ethereum Tops $3,000 with DeFi TVL at $45B
Ethereum's price has experienced significant volatility, recently hitting $3,000 for the first time since April 2022 before retracting to $2,900 to bolster liquidity. Several factors have contributed to its impressive performance, including the Dencun upgrade and the prospect of a spot ETF, giving it an edge over Bitcoin. Over the past week, ETH has surged by 6%, outperforming its counterparts. Bitcoin, on the other hand, faces liquidity at $53,000, a level crucial to sustaining its upward momentum.
The recent surge in staking activity could further propel Ethereum's price rally. Following the Merge upgrade, Ethereum became deflationary, transitioning to a proof-of-stake consensus mechanism. This upgrade has led to a reduction in the net supply of ETH, with over 1.4 million ETH burned or taken out of circulation, making Ethereum a scarcer asset. In comparison, Bitcoin saw its supply grow by 1.7% during the same period.
Furthermore, more than a quarter of Ethereum's supply, or around 30.1 million ETH, is currently locked in staking contracts, earning incentives for safeguarding the network. This increase in staked ETH, together with the total value locked (TVL) in Ethereum's decentralized ecosystem topping $45 billion, up from $20 billion at the start of the bull market in Q4 of last year, demonstrates a long-term positive mood. Investors are locking their holdings, reducing sell-side pressure and affirming their confidence in Ethereum's future growth.
These positive developments, combined with upcoming events like the Ethereum Dencun upgrade and the buzz surrounding a potential spot ETF, suggest a potential parabolic rally for Ethereum in the coming months. Additionally, Ethereum could benefit from the momentum generated by the Bitcoin halving expected in April, as historical price action indicates that halving events can trigger bull runs not only for BTC but also for altcoins.
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