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Ethereum is on the verge of reclaiming the $4,000 level as it approaches all-time highs. The second-largest cryptocurrency by market cap has faced skepticism throughout this cycle, with some analysts predicting it will underperform compared to its previous bullish waves. However, Ethereum has surprised skeptics, rising steadily in recent weeks despite market uncertainty.
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Key on-chain metrics from Glassnode reveal an important trend that could fuel further price gains: Ethereum whales have been accumulating aggressively since late November. This indicates growing confidence among major shareholders, who are positioning themselves for a potential upside. Historically, whale accumulation is often preceded by large price movements, indicating the potential for a near-term breakout.
While the market remains Forked on Ethereum trackIts ability to maintain bullish momentum near the $4,000 level will likely determine its performance in the coming weeks. A break above this critical resistance could open the door to new highs and cement ETH’s role as a leader in the ongoing bull cycle.
Huge whale balances in Ethereum are growing
Ethereum has seen a steady, if modest, rise since November 5, but it appears that the real fireworks for ETH have yet to ignite. With Bitcoin rising in price discovery and several altcoins outperforming expectations, Ethereum investors are looking for clear signals indicating an imminent uptrend for the second-largest cryptocurrency.
The main data on the chain is shared at the top Analyst Ali Martinez on X Provides interesting insights into the current state of Ethereum. Martinez highlights that Ethereum whales – entities that hold large amounts of Ethereum – have been accumulating aggressively since the price crossed the $3,330 level.
This accumulation trend indicates that the smart money is positioning itself for massive upward movement in the coming months. Historically, whale accumulation has often been a precursor to strong price rallies, as these large investors tend to anticipate big market shifts before retail traders.
However, the narrative is not entirely bullish. While the build-up of whales may signal confidence, it also raises concerns about a potential bull trap. These large holders could quickly pivot, offloading their ETH for other assets if market conditions change or if Bitcoin dominance suppresses altcoin growth. Such a move could catch small investors by surprise, leading to sharp corrections.
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For Ethereum, staying above critical levels like $3,800 with a break of key resistance could be the catalyst needed to spark a real bullish wave. Until then, ETH remains a favorite on the watchlist, balancing potential with uncertainty.
Price test of crucial resistance
Ethereum (ETH) is trading at $3,950 and has been struggling to break the crucial $4,000 resistance level for several days. Despite this, the price remains resilient, indicating strong support in the market. Breaking this level is essential to confirm the continuation of the uptrend, as the $4,000 level represents a psychological barrier and a major resistance area for the asset.
If Ethereum fails to break above the $4,000 level, a bounce towards lower demand areas around $3,500 is expected. This level has acted as strong support in recent weeks, providing a cushion during periods of increased selling pressure. A pullback to this area could allow for renewed buying momentum, paving the way for another attempt higher.
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However, recent market dynamics suggest that Ethereum may be poised for a significant move to the upside. Bitcoin’s price discovery rally and growing optimism around altcoins have created a bullish environment. As whales continue to accumulate ETH, as evidenced by on-chain data, market participants are increasingly confident in Ethereum’s ability to retest and surpass its all-time highs.
Featured image by Dall-E, chart from TradingView
