Rumors regarding Ethereum’s capacity for a significant price surge to a new peak in the current cycle are increasing within the community as many ponder why ETH has lagged behind other alternative cryptocurrencies. Various elements have been considered to have impeded ETH’s anticipated rally, including diminished whale involvement.
Is Interest from Major Investors in Ethereum Dwindling?
The excitement among whale Ethereum stakeholders raises concerns as large transaction volumes do not reflect any considerable increase in the current market cycle. A recognized author at the CryptoQuant on-chain platform, IT Tech, emphasized the downward trend, indicating a deficiency in substantial whale activity.
This trend suggests that affluent individuals and institutional investors are remaining apprehensive as significant ETH transfers continue to be low. With the decline in large transactions, ETH may encounter considerable challenges, as whale involvement conventionally drives price increases.
IT Tech perceives Ethereum’s significant transactions to be minimal compared to previous cycles such as 2017 and 2021, where these transfers were widespread. This indicates that the market is increasingly driven by retail participation and is more organic than speculative frenzy.
While there have been minor upticks in whale involvement, the expert pointed out that they are not at levels that would suggest an imminent sell-off or a parabolic surge. Meanwhile, IT Tech advises investors to monitor unexpected surges in whale activity as such events typically precede significant price fluctuations.
According to the expert, Ethereum is witnessing a gradual upward momentum. However, the next significant alteration in market dynamics will be contingent upon whale movements. Currently, the altcoin has reclaimed the $3,000 threshold as prices recover following a general market downturn, setting the next critical resistance level at $3,500.
To confirm a breakthrough over the $3,500 threshold, IT Tech asserts that there must be an uptick in large transaction volume. If ETH does not see an increase in these transactions, it may enter a consolidation phase or experience a significant pullback.
IT Tech anticipates a pullback toward the $2,800 and $2,500 range if large transactions coincide with price weakness, potentially leading to whale distribution and causing ETH to decline. With this subdued activity, ETH’s stability is coming under scrutiny, prompting uncertainty regarding its next significant price movement.
Is ETH’s Upward Trend Expecting Volatility?
ETH is trading between $3,000 and $3,200 with slight bullish momentum. Nevertheless, crypto expert and trader, Titan of Crypto has recognized a pattern that could bolster Ethereum’s ascending trajectory in the upcoming days.
Analyzing ETH’s price on the daily chart, Titan of Crypto anticipates an upswing following a breakout from a Falling Wedge formation. This pattern is augmented by an imminent RSI bullish divergence, which could ignite further price spikes towards key resistance levels.
Although Ethereum is exhibiting upside potential, the expert foresees volatility possibly materializing shortly after the recently concluded FOMC meeting.
Featured image from Unsplash, chart from Tradingview.com
