The Ethereum price has seen a modest increase of 0.75%, rising to $1,595 during Friday’s trading session, despite a climate of uncertainty in the broader market due to U.S.-China trade tensions. Analysts speculate that this uptick in buying pressure could be attributed to the accumulation by ‘whales’ or large-scale investors. This renewed investor interest and recovery could potentially take the coin’s price beyond the multi-month resistance of the current correction and edge closer to the much-anticipated $2,000 rally.
For the past two weeks, Ethereum’s price has shown a sideways action, fluctuating around the $1,600 mark. This neutral movement, marked by rejection on either side, indicates a lack of clear initiation from either buyers or sellers. However, on-chain data reveals that several large wallets have been significantly withdrawing thousands of ETH tokens from major exchanges in recent weeks.
Since the start of April, a wallet associated with Metalpha has withdrawn a staggering 29,000 ETH, amounting to approximately $48.73 million, from Binance. Adding fuel to the bullish fire, another notable wallet, known as 0xd81E, has moved 46,577 ETH or around $97.26 million from Gate.io since mid-February. In a similar vein, wallet 0x6034 has pulled out 10,091 ETH, worth about $18.8 million, from Bybit since mid-March.
Historically, this kind of amplified accumulation from large investors has been linked to the formation of market bottoms and subsequent bullish recovery.
In terms of price movement, Ethereum is nearing a bullish breakout from the 20-day exponential moving average (EMA) with its intraday surge. Since late December 2024, there have been several attempts to breach this resistance, but each has met with failure, leading to a downtrend of between 17% to 35%.
This potential retest presents a pivotal moment for Ethereum, which could either trigger further downfall or signal a change in market dynamics. If the altcoin experiences another reversal from the 20-day EMA slope, sellers may force an 18% fall to reach the bottom support trendline at $1,250.
However, a bullish breakout from this resistance EMA could speed up the momentum towards a 20% rally, challenging the resistance trendline of the falling wedge pattern. Over the last four months, the chart setup has been steadily correcting within these two converging trendlines. A successful flip of this overhead resistance could signal the end of the current correction, paving the way for the much-anticipated rally.
