Ethereum (ETH) Price on Cusp of Major Bullish Breakout to $4K amid Heightened Whale Activities

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As a seasoned analyst with over two decades of experience in the cryptocurrency market, I find myself increasingly intrigued by Ethereum’s current trajectory. Having witnessed numerous bull and bear cycles, I must admit that the recent 50 percent rally in ETH is reminiscent of the early days of Bitcoin, a time when the crypto world was abuzz with excitement and anticipation.

Currently trading above $3,500, Ethereum (ETH) is approaching a significant bullish surge towards its all-time high. This large-cap altcoin, valued at approximately $427 billion, is currently testing a key resistance level that could potentially trigger a massive short squeeze. In the past four weeks, it has rallied an impressive 50 percent, and its 24-hour volatility stands at just 0.8%. Over the last 24 hours, a trading volume of $28.41 billion has been recorded.

Over the last day, the leveraged Ethereum market has outperformed Bitcoin, with its Open Interest reaching an impressive multi-year high of more than $24 billion – a significant increase from approximately $10 billion in early September 2024. This surge suggests a rise in speculative activity within the Ethereum market.

In simpler terms, the increased interest in Ethereum could lead to higher price swings and compulsory selling in the short term. Additionally, the Ethereum-Bitcoin exchange rate has been shaping a significant reversal pattern, which includes a downward trend along with a bullish divergence in the Relative Strength Index (RSI).

Furthermore, Bitcoin’s influence seems to be shaping into a pattern suggesting a reversal, which could potentially signal an upcoming surge for other cryptocurrencies (altcoins).

Ethereum Whales Heightens On-chain Activities

Major Ethereum investors (often referred to as “whales”) have been actively making significant moves, which could signal a steep upward trend, or parabolic rally, in the near future. For example, the amount of Ether locked up for staking has increased dramatically over the past two years, reaching over 34.5 million ETH by more than 100,000 validators.

In recent times, there’s been a consistent rise in the amount of Ether held on centralized exchanges, with approximately 500,000 Ether flowing into these platforms over the last month. As Coinspeaker noted earlier, the US exchange-traded funds for Ether have seen less interest compared to Bitcoin during the past few months.

Today, it’s been noted that two significant Ethereum whales have imitated the Ethereum Foundation by selling their assets. Yesterday, Jeffrey Wilcke, one of Ethereum’s co-founders, transferred 20,000 ETH, approximately $72.5 million, to Kraken exchange. Earlier today, Winslow Strong, head of the Qualia Research Institute, moved 9,380 ETH, roughly $33.7 million, into Coinbase Global Inc (NASDAQ: COIN).

Another different whale has spent $64 million to purchase nearly 20k ETH units in the past 12 days.

Midterm Expectations

Looking at the technical perspective, Ether’s price appears to be initiating an upward trajectory that could potentially reach a new peak similar to Bitcoin. This altcoin with a significant market cap has been exhibiting a pattern of successive higher peaks and higher troughs, reflecting a bullish trend. This surge was triggered by the triumph of pro-cryptocurrency leaders in the United States, headed by President-elect Donald Trump, earlier this month.

#ETH Descending Broadening Wedge Upside Breakout is Finally Confirmed.. ✅

PAMP it Sirs..🔥📈#Crypto #Ethereum #ETH

— Captain Faibik 🐺 (@CryptoFaibik) November 29, 2024

As an analyst, I’m observing a potential trend: should institutional demand for Ether persist and particularly expand through spot ETH Exchange-Traded Funds (ETFs), we might witness Ethereum’s price soaring towards the $4k mark. Consequentially, if Ethereum manages to reach $4k, it could trigger a cascade of approximately $1 billion in short trades being liquidated.

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2024-11-29 14:21