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Ethereum is on the verge of reclaiming the $4,000 level as it nears its all-time highs. The second-largest cryptocurrency by market capitalization has faced skepticism throughout this cycle, with some analysts predicting it would underperform compared to its previous bull runs. However, Ethereum has surprised skeptics, rising steadily in recent weeks despite market uncertainty.
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Key on-chain indicators from Glassnode reveal an important trend that could fuel further price increases: Ethereum whales have been accumulating aggressively since late November. This speaks to growing confidence among major holders, who are positioning themselves for upside potential. Historically, whale accumulation has often preceded large price movements, portending the possibility of a short-term breakout.
Although the market remains divided on Ethereum’s trajectory, its ability to maintain upward momentum near the $4,000 mark will likely define its performance in the weeks to come. Breaking this critical resistance could open the door to new highs and further solidify ETH’s role as a leader in the ongoing bull cycle.
Ethereum mega-whale balances surge
Ethereum has seen a steady, albeit modest, rally since November 5, but it appears the real fireworks for ETH are yet to be lit. As Bitcoin soars toward price discovery and several altcoins beat expectations, Ethereum investors are looking for clear signals of an impending bull run for the second-largest cryptocurrency.
Key on-chain data shared by leading analyst Ali Martinez on X provides fascinating insights into the current state of Ethereum. Martinez points out that Ethereum whales – entities holding significant amounts of ETH – have been accumulating aggressively since the price surpassed the $3,330 level.
This accumulation trend suggests that smart money is positioning itself for what could be a massive rally in the coming months. Historically, whale accumulation has often been a precursor to a sharp price rise, as these large investors tend to anticipate major market changes before retail traders.
However, the story is not entirely optimistic. While the buildup of whales may be a sign of confidence, it also raises concerns about a possible bull trap. These large holders could quickly change course, offloading their ETH for other assets if market conditions change or if Bitcoin’s dominance suppresses the altcoin’s growth. Such a move could surprise small investors, leading to sharp corrections.
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For Ethereum, holding above critical levels like $3,800 while breaking key resistances could be the catalyst needed to spark a true bull run. Until then, ETH remains a watchlist favorite, balancing potential and uncertainty.
Prices test crucial resistance
Ethereum (ETH) is trading at $3,950, struggling to rise above the crucial $4,000 resistance level for several days. Despite this, the price remains resilient, signaling strong market support. Crossing this level is essential to confirm the continuation of the uptrend, as $4,000 represents a psychological barrier and a key resistance zone for the asset.
If Ethereum fails to breach the $4,000 mark, we could expect a return to lower demand areas around $3,500. This level has served as important support in recent weeks, providing a cushion during periods of increased selling pressure. A pullback into this area could allow for renewed buying momentum, paving the way for another attempted breakout higher.
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However, recent market dynamics suggest that Ethereum could be poised for a significant rise. Bitcoin’s rise in price discovery and growing optimism around altcoins have created a bullish environment. As whales continue to accumulate ETH, as highlighted by on-chain data, market participants are growing more confident in Ethereum’s ability to retest and surpass its all-time highs.
Featured image of Dall-E, chart by TradingView
