The world’s second-largest cryptocurrency Ethereum (ETH) has given a strong run-up above $2,900 gaining 4% in the last 24 hours. Since the beginning of 2024, the Ethereum price is up by 24% so far, as the altcoin gears up for a further rally to $4,000.
Ethereum Whale Accumulation
The major reason behind today’s Ethereum price rally is the strong whale accumulation. According to Lookonchain, an Ethereum whale initiated a series of transactions, beginning with the withdrawal of 100 million USDT from the popular exchange Binance. Subsequently, the investor allocated 60 million USDT to purchase 21,353 ETH at an average price of $2,810 per token. Following this purchase, an additional 10,649 ETH, equivalent to $30.68 million, was withdrawn from Binance.
Courtesy: Lookonchain
This recent transaction marks a continuation of the whale’s buying spree in the Ethereum market since February 8th. Over this period, the investor has amassed a total of 52,759 ETH, amounting to approximately $145.4 million, from both centralized exchanges (CEX) and decentralized exchanges (DEX).
The substantial Ethereum acquisitions by the whale investor underscore growing confidence in the digital asset’s potential amidst a period of market volatility.
Ethereum Price Faces Major Resistance At $3,000
The optimism among Ether bulls is palpable, with many seeing the $3,000 mark as an attainable target. However, historical data suggests that maintaining such a price level is no easy feat.
A notable example is seen three weeks prior to April 3, 2022, when ETH surged by 42%, soaring from $2,520 to $3,580. Yet, this rally was short-lived, as its price plummeted by 46% over the next 40 days.
Given this precedent, traders are now wary of whether Ether could experience a comparable outcome in the current scenario. Also, everyone is bullish about the possibility of the spot Ethereum ETF approval by May 23 this year. Players like VanEck and Kraken are the recent ones to join the race for these investment products.
The SEC currently has multiple applications queued up for spot Ethereum ETFs. With the recent approval of spot Bitcoin ETFs and their subsequent positive reception, traditional investment firms have begun showing a keen interest in Ethereum ETFs.
American multinational asset manager BlackRock has also submitted an application for an Ethereum ETF to the SEC. However, the regulator postponed its decision on the offering, stating the need for additional time to carefully consider the application and make an informed decision. As a result, the SEC announced that it would delay its decision on BlackRock’s iShares Ethereum Trust until March 10, 2024.
On the other hand, market analysts have been also calling for a rally to $4,000 in the wake of the Dencun upgrade next month. Popular crypto analyst Michael van de Poppe said that Ethereum might catch up to the Bitcoin gains in its rally to $4,000. As Bitcoin enters the consolidation phase, the momentum will shift to Ethereum.
#Ethereum is strengthening its momentum.
How do I know?
It’s flat against BTC, while Bitcoin ran from $45,000 to $52,000.
The momentum will shift toward Ethereum when Bitcoin consolidates and calms down.
Onwards to $3,500-4,000. pic.twitter.com/541qbeRKdk
— Michaël van de Poppe (@CryptoMichNL) February 15, 2024
