Key Points
- Ethereum (ETH) is showing signs of recovery and bullish momentum after a recent 30% surge.
- BlackRock’s ETHA and other Ethereum whales continue to accumulate Ether, indicating strong demand.
After a significant 30% increase last week, the price of Ethereum has been undergoing a correction in the past few days.
As the leading altcoin, Ethereum has a market cap of approximately $373 billion and an average daily trading volume of about $36 billion. It saw a 3% drop in the last 24 hours and is currently trading just above $3,100 as of the mid-London session on November 15, 2024.
Ethereum’s Price Movement
In a four-hour time frame, the price of Ethereum, when compared to the US dollar, has been forming a falling wedge. This signals the end of the second phase of the Elliott Wave Theory.
From a technical analysis perspective, Ethereum’s price needs to consistently close above the short-term resistance level of around $3,156 to validate a rally beyond $4,000.
The ETH/BTC chart is currently of utmost importance for Ethereum. This chart has been retesting a crucial support level of approximately 0.0347.
The ETH/BTC pair has been forming a potential reversal pattern in the daily time frame, along with a rising divergence of the Relative Strength Index (RSI). If Bitcoin’s dominance retracts from the current resistance range of 60 to 61%, Ethereum’s price will rebound towards its all-time high (ATH) and could potentially trigger the much-anticipated altseason.
In the event of a sustained sell-off in the near term, Ethereum’s price could find robust support around $2,950.
Ethereum Whales Continue Accumulation
According to on-chain data analysis from market intelligence firm Santiment, Ethereum whales have bought more than 430K Ether, worth over $1 billion. The overall supply of Ether on centralized exchanges decreased by over 13K in the past 24 hours, solidifying the rising demand from whale investors.
US spot Ethereum Exchange-Traded Funds (ETFs) have been the largest buyers of Ether in the last three weeks. Market data reveals that US spot Ether ETF issuers have accumulated more than $740 million in the past three weeks.
On Thursday, BlackRock’s ETHA and Invesco’s QETH registered a net cash inflow of about $18.87 million and $929K respectively. Grayscale’s ETHE saw the highest cash outflow of about $22 million, making the daily total net inflow for US spot Ether ETTs about $3.24 million on Thursday.
The Market Picture
The Ethereum network remains popular among institutional investors looking to tokenize real-world assets such as stocks, bonds, and real estate. Additionally, the Ethereum network continues to be the largest DeFi ecosystem, with a total value locked of about $57 billion and a stablecoins market cap of over $93 billion, despite the emergence of other layer one (L1) chains like Solana (SOL).
Ethereum’s layer two scaling solutions have enabled it to actively compete with other blockchains due to the low cost, vibrant online community, and reputable security.
