Ethereum is one of the few cryptocurrencies that are largely unchanged when most altcoins are in the red by double digits. Ethereum is down by 2.90% to trade at $2923.79 as of 11:47 GMT+3. Volumes have dropped significantly by 15% in the last 24 hours to $16.739 billion.
Ethereum’s resilience has much to do with the big news around it now and in the coming months. At the moment, investors are excited that despite the market having stalled after Bitcoin hit $52,300 resistance, whales are buying up Ethereum.
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In the last four days, a whale has bought up 87,819 Ethereum. That’s spending $252.5 million in Ethereum in less than a week. This whale also doesn’t seem to be buying to speculate for a few hours or days.
They seem to be buying for the long haul. This is evident in the fact that after buying, they distributed the tokens to different wallets. This has reignited market optimism that good tidings lie ahead for Ethereum. Someone spending over $200 million on Ethereum at an average price of $2800 means they expect ETH to rise significantly. It reinforces the narrative that Ethereum could be headed to $10k or more soon.
Ethereum
ETF hype will start soon…
Anticipation of the @ethereum spot ETF approval deadline on 23 May is one of the main catalysts that will take ETF to ATH’s soon.
The deadline forces the SEC to decide whether or not spot Ethereum ETF products will also become available… pic.twitter.com/Fw6VrIGnH8
— Lion’s Share Group (@Lions_Share_) February 23, 2024
Overall, Ethereum’s stability on a day when the market is red is due to whale buying and upcoming big news such as Dencun and the expected ETF approval in May.
Ethereum Making Higher Lows In A Bullish Channel, A Signal To More Upside
In the short term, investors are keenly watching the Dencun hard fork slated for March 13th. This is a big deal as it makes Ethereum more adaptable to the market by scaling according to the ever-rising demand. Dencun is a big deal because it significantly reduces the transaction costs for Ethereum L2s such as Optimism. The result is that Ethereum can handle thousands of transactions per second, rivaling its competitors that don’t come close on critical aspects such as network stability and decentralization.
Ether is currently making higher lows on the day chart, an indicator that every dip is being bought as bulls take control.
Ethereum has been on an uptrend since Feb 5th and has consistently been making higher lows. In the last 3 days, Ethereum has topped out at $3095 but is currently forming a higher low at $2925. If Ethereum bounces off this support and continues the uptrend, then prices above $3100 could be within reach in the day.
However, if the $2925 support fails, the bullish channel will be broken, and two scenarios could play out. The first would be a possible consolidation if overall Ethereum trading volumes drop. In such a situation, Ethereum could range around the $2900 and $3000 level until volumes increase.
On the other hand, if bearish volumes increase, driven by a selloff across the market, then $2900, a critical psychological support level, would come into focus. If bears can breach through $2900, Ethereum could quickly drop to $2588, now a vital support level.
Ethereum Price Prediction: Why $3100 And Above Is More Likely
Analysts believe the potential for the first Ethereum ETF to come on May 23rd could also support the price as that date approaches. The ETF date is hard capped because that is the date that the SEC has been given to either approve or reject the Ethereum ETFs. With the recent approval of Bitcoin ETFs, investors believe that the Ethereum ETFs will also sail through. If approved, Ethereum ETFs will pave the way for institutional buying of Bitcoin, which could easily push Ethereum to prices above $10k.
While the price of Ethereum could enter a consolidation phase or even turn bearish, the case for bulls prevailing is strongest. That’s because there is no real bearish momentum in the market or an actual trigger for it. Most altcoins that are down by double digits today have gained by 500% or more in the month. This means a correction due to profit-taking was due at some point.
As for Bitcoin, selling volumes remain low, above $50k, and a slight increase in buying volumes could trigger a short squeeze and push the price up by double-digit percentages in hours. This makes the case for Ethereum strong since it already has big news of its own.
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