After an impressive performance in the past two months, Ethereum (ETH) price has reached a crucial resistance level above $3,953, which could either delay or confirm further bullish sentiment. The largest altcoin, with a fully diluted valuation of about $476 billion and a daily average traded volume of about $30 billion, successfully retested its bullish breakout from the multi-year falling logarithmic trend.
However, Ethereum price could consolidate in the near term to attract more buyers, especially as Bitcoin (BTC) price steals the show with a rally beyond $105k earlier today. Consequently, the highly hyped altseason could take much longer to materialize as large-cap altcoins take time to attract new liquidity amid slow cash rotation from Bitcoin.
Ethereum Whale on the Move
According to on-chain data analysis provided by Glassnode, the number of Ethereum whale addresses, with a balance of above 10k ETH, has continued to increase exponentially in the recent past. The notable rise of Ethereum whales coincides with the ongoing decline in Ether supply on centralized exchanges; more than 95k ETH units were withdrawn from CEXes in the past seven days.
Remarkably, the US spot Ether ETFs have registered more than $2 billion in net cash inflows during the past three weeks. Led by BlackRockms ETHA, the US spot Ether ETFs registered the highest cash weekly inflow of about $854 million last week.
What Next?
Amid the rising demand for Ether by institutional investors, especially as a measure to diversify their respective crypto portfolios, the bullish prospects have significantly spiked. From a technical analysis standpoint, ETH’s price is aiming for $5,250 in the near term, which coincides with the daily Fibonacci extension.
The parabolic rally for Ether will however be confirmed after the weekly Relative Strength Index (RSI) surges above the 70 percent level again since earlier this year.
