- At the time of writing, Ethereum was trading at key levels on the daily time frame.
- Institutions and whales resume activity as optimism returns to the market
Ethereum (ETH), the second-largest cryptocurrency on the market, is once again trading at critical levels. These levels are especially important for long-term investors. At the time of writing, ETH was hovering around the $2,700 range. This is an important resistance level on the daily time frame.
The previous month's price levels are currently acting as major support and resistance zones. ETH respects the previous month's low as support, and the midpoint between the previous month's high and low acts as resistance.
Market sentiment remains optimistic, pointing to a possible breakout of the $2,700 resistance. This could cause ETH to target the $3,200 level. However, market trends remain unpredictable and sudden changes could change this outlook.
Source: Hyblock Capital, TradingView
Increased whale and facility activity
Increased activity from institutional investors and whales further supports the rise in ETH price. Recently, an Ethereum whale that was silent for 4 months cashed out 12,979 ETH and made a profit of $34.3 million.
The whale initially purchased ETH for just $7.07 per token. The whale then sold a total of 15,879 ETH for a profit of $43.5 million.
This whale still holds 5,760 ETH worth about $15.5 million, meaning large investors are betting that ETH will reach its $3,200 target. This new whale activity is a strong indicator of ETH’s bullish potential and provides further support to the $3200 target.
Source: SpotOnChain
On the other hand, institutional behavior also influences the market.
Recently, two major institutions have been offloading ETH. Trading company Cumberland deposited 11,800 ETH worth $31.88 million to Coinbase. On the contrary, ParaFi Capital withdrew 5,134 ETH from Lido and transferred it to Coinbase Prime.
Despite this selling activity, the increase in Whale participation is a sign that many remain optimistic about Ethereum's future price movements.
Increase in total ETH addresses with balances
Another positive signal for ETH is the increase in the total number of addresses holding balances. An increase in the number of wallet addresses is a strong indicator that more investors are entering the Ethereum ecosystem.
This trend is often seen as a bullish signal, suggesting increased adoption of Ethereum due to its usefulness in decentralized finance (DeFi) and scalability solutions.
Source: Into the Block
The increase in wallet addresses can be interpreted as another bullish signal suggesting a $3,200 price target for ETH in the final quarter of this year. This period is historically known for bullish cryptocurrency market activity.
Fear and Greed Index are now neutral
The market's optimism is also reflected in the Fear and Greed Index, which has moved to a neutral value of 50 at the time of writing. This is a positive change, especially after a long period of extreme fear following the August 5th market crash.
As the market begins to recover, more traders are likely to be attracted to ETH, making it an ideal time to accumulate more ETH ahead of the expected bullish move.
Historically, entering the market when neutral sentiment is flashing offers a better opportunity than waiting for extreme greed. This often indicates a market ceiling.
Source: IntoTheCryptoverse
At the moment, Ethereum is positioned for further upside due to whale activity, increased adoption, and improving market sentiment.
If ETH can break above the $2,700 resistance, the next target of $3,200 could be within reach.
