Key Points
- Ethereum’s price increased to $3,427, but on-chain signals indicate potential volatility.
- Declining whale activity and the emergence of dormant wallets could impact Ethereum’s short-term price.
Ethereum’s price has seen a 1.62% increase in the last 24 hours, pushing the 7-day price growth to 4.40% and the market price to $3,427.
The current short-term recovery, which has led to a market cap of $412 billion, is being complicated by increasing complexities in institutional support and whale activity, signaling potential massive price fluctuations.
Ethereum’s Price Movement
In the 4-hour chart, Ethereum’s price failed to sustain above the 38.20% Fibonacci level at $3,477, leading to a quick pullback to the 23.60% Fibonacci level at $3,333.
This resulted in a 4.67% drop, forming a bearish engulfing candle in the daily chart. Ethereum’s price trend is currently consolidating between these two key Fibonacci levels.
At present, a massive bullish engulfing candle is forming, indicating a 3.20% surge. Breaking above the 20 EMA line, Ethereum is re-challenging the dynamic resistance average line 50 EMA.
Additionally, the RSI line has seen a significant uptick crossing above the 14-day average line and the 50% level, reflecting a surge in buying pressure.
Ethereum’s Price Targets
The bullish engulfing candle suggests that Ethereum has an increased chance of breaking out of the 38.20% Fibonacci level. This bullish rally could potentially challenge the critical resistance level of $3,600.
However, if the price closes under the $3,300 level, it will test the bullish dominance at $3,100. Increased pressure amid market fluctuation could potentially lead to a drop to $3,000.
Over the last week, Ethereum’s whale holdings, from addresses holding $10,000 worth of Ethereum to more than $10 million, have fluctuated from 805.57k addresses to 788.3k addresses. This marks a significant shift in whale addresses during the correction phase.
A closer look at the categorization reveals that addresses holding more than $10 million worth of Ethereum fell from 2.52k to 2.47k. Furthermore, the addresses holding between $1,000,000 and $10,000,000 worth of Ethereum decreased from 13.37k to 13.14k.
This significant shift in whale addresses indicates an underlying weakness in the Ethereum whale community.
A whale from the Ethereum ICO era has recently awakened. After being dormant for 9.5 years, the whale has deposited 742.11 Ethereum tokens over the past 5 hours.
This is worth nearly $2.5 million on two different wallets. One of these wallets has sent 431.11 Ethereum to Coinbase.
The trader initially invested nearly $600 in the ICO, receiving 1,940 ETH at the Genesis block. Currently, the whale continues to hold its 1,198 ETH tokens, which are worth $4.01 million.
As multiple ICO-era whales awaken to offload, short-term fluctuations are likely to experience increased bearish influence.
In conclusion, while Ethereum’s price shows bullish momentum aiming for $3,600, declining whale activity and the awakening of dormant wallets suggest potential short-term volatility.
