After a long wait, the Bitcoin halving has taken place. This event came at a time when Ethereum (ETH) was growing slowly in the wake of the recent market downturn. The anticipation of SEC approving Ethereum ETFs in May had faded, contributing to Ethereum’s losses of around 15% over the past week. Bitcoin saw no immediate response following the halving event. However, since then, Ethereum has experienced a modest increase of approximately 0.8% in value. As we keep an eye on Bitcoin and other altcoins, let’s explore why Ethereum’s price is climbing.
Current Market Performance of Ethereum Price
In the last 24 hours, Ethereum’s price has gone up by 1.39%, reaching $3,214.11. For the week, this marks a 2.16% climb. However, compared to a month ago, there’s been an 8.40% decrease. These figures suggest Ethereum may be experiencing market fluctuations and potential corrections in the future.
According to CoinMarketCap’s latest market cap rankings, Ethereum holds the number two spot with a value of around $385.8 billion. The token has seen a modest boost in trading, resulting in a 24-hour volume of roughly $10.16 billion.
Ether’s price has fluctuated between $3,119.55 and $3,210.30 during the day, showing some volatility. But compared to its record high of $4,891.70 on November 16, 2021, Ether has dropped by over a third (34.69%), suggesting a significant retreat from its peak price.
Whale Activity
Lately, the value of Ethereum has risen dramatically. This trend is supported by a large number of transactions recorded on the blockchain, with one transaction standing out for its size: the removal of 10,119 ETH from Binance. This significant transfer suggests that a major Ethereum investor, or “whale,” has been active in the market. As reported by Lookonchain, this investor has steadily bought Ethereum since April 8, amassing a total of 127,388 ETH, equivalent to approximately $405.19 million.
Significantly, each Ethereum token costs an average of $3,172 in purchases, indicating a positive and optimistic perspective for Ethereum’s future value in the marketplace.
Adding to the rumors is the participation of Justin Sun, the creator of Tron (TRX), a well-known figure in the crypto world recognized for his financial ventures and public remarks. Claims imply that Sun has been buying Ethereum, with evidence suggesting that a wallet reportedly linked to him has been accumulating a substantial quantity of ETH since the start of April.
Starting on March 31, this wallet’s transactions show a consistent pattern. A significant amount of stablecoins were transferred from Binance to Ethereum. Following this transfer, the wallet made sizeable purchases of ETH, both through Binance and decentralized exchanges (DEXs).
The transaction patterns of this digital wallet and one connected to Justin Sun before his Ethereum purchase in February add fuel to the rumors suggesting Sun as the possible owner of these transactions.
Approximately $891 million worth of Ethereum, or 295,757 ETH, have been reportedly amassed by wallets believed to belong to Sun since February 12. The average cost per ETH was around $3,014 during these transactions. Sun’s activities, along with other notable investors, are adding fuel to Ethereum’s price surge.
At present, Ethereum is priced at $3,206.30 on the market, reflecting current trends and investor sentiment towards the digital currency. The involvement of influential figures like Sun underscores shifting dynamics within the Ethereum community, highlighting its significance and potential for further growth.
Strong Support Levels and Bullish Technical Patterns
Several significant reasons have contributed to Ethereum’s recent price surge. Before the cryptocurrency market underwent its halving event, Ethereum managed to maintain its value above the notable $2,875 mark. This figure corresponded with the 38.2% Fibonacci retracement point, providing buyers with a robust foundation from which to influence market trends.
The Bitcoin halving event saw a significant pullback, which in turn positively affected Ethereum’s price and reached an all-time high of $3,198. A closer look at the 4-hour chart reveals a double bottom pattern, a typical technical signal that marks the end of a downtrend and may lead to a substantial price rise. This trend, combined with the robust market momentum, has bolstered the confidence of buyers.
If Ethereum’s price continues to climb positively, there’s optimism it will surpass the significant barrier at $3,300. This achievement could bolster buyers’ faith and potentially prolong the upswing. In such a scenario, Ethereum might advance further, with analysts predicting potential peaks at $3,730 and even $4,100.
Conclusion
Ethereum has been holding strong against market downturns, indicating its robustness at crucial support points. Furthermore, emerging bullish chart formations hint towards an impending price increase. Investors are now targeting significant resistance levels, which could lead to additional gains for Ethereum in the short term.
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2024-04-22 13:32