In recent days, Ethereum’s performance has been nothing short of impressive. The altcoin, the largest of its kind, has breached a crucial resistance level in excess of $3,953, a move that could potentially validate or stall further bullish sentiment. With a fully diluted valuation estimated at an impressive $476 billion and a daily average trading volume of about $30 billion, Ethereum has once again successfully retested its bullish breakout from a sustained multi-year falling logarithmic trend.
However, Ethereum’s price might undergo a period of consolidation in the near future in order to attract a greater number of buyers. This comes at a time when Bitcoin (BTC) is the talk of the town, having rallied past the $105k mark earlier in the day. As a result, the much-anticipated altseason may take longer than expected to come to fruition. Large-cap altcoins such as Ethereum require time to generate new liquidity, particularly in the context of slow cash rotation from Bitcoin.
On-chain data analysis by Glassnode has provided some interesting insight into Ethereum’s recent activities. It reveals that the number of Ethereum whale addresses, those with a balance exceeding 10k ETH, has been on the rise. This uptrend in whale activity correlates with a significant drop in Ether’s availability on centralized exchanges. Over the past week, more than 95k ETH units have been withdrawn from centralized exchanges.
US spot Ether ETFs have been performing well, registering net cash inflows exceeding $2 billion over the past three weeks. BlackRock’s ETHA leads the pack, recording an all-time high weekly cash inflow of approximately $854 million just last week.
So, what’s next for Ethereum? The rising demand for Ether, particularly among institutional investors looking to diversify their crypto holdings, has bolstered bullish projections significantly. From a technical standpoint, ETH’s price is set to hit the $5,250 mark in the near term, a figure that aligns with the daily Fibonacci extension.
However, the parabolic rally suggested for Ether will only be confirmed once the weekly Relative Strength Index (RSI) exceeds the 70 percent mark once more, something it hasn’t done since earlier this year.
In conclusion, Ethereum’s recent performance underscores its position as a serious contender in the crypto market. While it might take a while for the much-touted altseason to materialize, the ongoing trend of increasing institutional investment in Ethereum promises exciting times ahead for this altcoin.
