Key Points
- Ethereum is testing the $4,600 resistance level again, showing a 16% surge in trading volume.
- Whale accumulation continues to rise, suggesting a bullish bias for Ethereum.
Ethereum is once more challenging the crucial $4,600 resistance level after a week of active trading. At the moment, Ethereum is trading at around $4,565, almost unchanged over the previous 24 hours, but demonstrating a 16% increase in trading volume.
This resurgence of investor interest coincides with an increase in whale accumulation. As per data from Lookonchain, a whale initially sold 1,001 Ethereum (valued around $4.55 million). Later, it initiated a 15x leveraged long position on 15,023 Ethereum (worth approximately $67.8 million), indicating a strong bullish bias.
Whale Movements
Another significant investor, 0xd65F, deposited $33 million in USDC into Hyperliquid and bought 7,311 Ethereum (valued around $33 million) at roughly $4,514 earlier on Oct. 6.
Another whale, 0xa312, withdrew 8,695 Ethereum (worth about $39.5 million) from Binance at $4,543. This suggests a shift towards self-custody and long-term confidence in Ethereum’s price stability.
Possible Price Increase for Ethereum
This accumulation happens concurrently with Bitcoin’s record-breaking all-time high of $125,559 on October 5. Historically, robust Bitcoin rallies have led to Ethereum upswings, with many analysts believing Ethereum could be the next cryptocurrency to explode in the coming weeks.
Prominent crypto analyst Ted noted that strong buy orders are concentrated between $4,250 and $4,450, which makes them solid support levels. According to him, unless these bids are removed, an Ethereum price drop is unlikely in the near term.
However, if Ethereum sees a downfall below $4,250, the next major demand zone sits around $4,150.
Ted predicts that the second-largest cryptocurrency could see a fresh all-time high once it reclaims the $4,650 resistance. Notably, Ethereum is currently trading 8% below its peak of $4,950, achieved on August 25.
Indicators of Strength
On the daily chart, the Bollinger Bands show moderate expansion as the price nears the upper band around $4,747. Ethereum is currently trading slightly above the mid band (20-day SMA) at $4,321, a bullish sign suggesting positive short-term momentum.
Meanwhile, the RSI is hovering below overbought territory. This reflects balanced buying pressure with room for further upside. However, traders should keep an eye on the $4,450 support as failure to hold above this level could lead to a drop to the $4,150 support region.
