After a remarkable performance in the last couple of months, Ethereum (ETH) has managed to break through an important resistance level above $3,953. This achievement could potentially either stall or confirm the current bullish trend that Ethereum has been experiencing. With a fully diluted valuation of approximately $476 billion and a daily trading volume of around $30 billion, Ethereum has successfully tested its breakout from a multi-year downward trend.
Despite the recent gains, Ethereum’s price may hit a temporary pause as it looks to attract more buyers. This pause comes at a time when Bitcoin (BTC) has been dominating the spotlight, recently surpassing the $105k mark. As a result, the much-anticipated altseason may take longer to materialize, with large-cap altcoins struggling to attract new liquidity as money continues to slowly shift from Bitcoin.
The movement of Ethereum whales has been a point of interest, with on-chain data from Glassnode indicating a rapid increase in the number of Ethereum whale addresses holding over 10k ETH. This surge in whale activity coincides with a decrease in the supply of Ether on centralized exchanges, with over 95k ETH withdrawn in the past week alone.
Institutional investors have shown a growing interest in Ethereum as a means to diversify their portfolios. U.S. spot Ether ETFs have seen over $2 billion in net inflows over the past three weeks, with the BlackRock-led ETHA ETF experiencing a record weekly inflow of around $854 million last week.
Looking ahead, Ethereum’s price is poised for further growth, with a target of $5,250 in the near term based on the daily Fibonacci extension. However, for the rally to gain full momentum, Ethereum will need to confirm a breakout, with the weekly Relative Strength Index (RSI) rising above 70%—a level that has not been seen since earlier this year.
In conclusion, Ethereum’s bullish momentum is supported by growing institutional demand and a strong technical setup. As the cryptocurrency market continues to evolve, Ethereum remains a key player to watch for investors looking to capitalize on the potential gains in the digital asset space. Stay informed and ahead of the curve with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.