Key Points
- Ethereum’s price is showing bullish trends, aiming for a $2,800 mark, backed by whale investors.
- The demand for Ethereum among institutional investors is gradually increasing.
Ethereum’s price has been showing bullish momentum over the past few weeks. The leading altcoin, with a fully diluted valuation of about $315 billion and an average daily traded volume of around $12.7 billion, has surged over 9 percent in the past week to trade around $2,623 on Friday, October 18.
Ether’s price against the US dollar is nearing a crucial resistance level. From a technical analysis standpoint, Ether’s price is targeting $2,800, which aligns with the daily 2.618 Fibonacci Extension, if the bulls can defend the liquidity range above $2,600.
Price Movements and Predictions
However, Ether’s price could fall back to the support level of around $2,537 before rallying towards its all-time high. Veteran trader Peter Brandt suggests that Ether price has been forming a head and shoulders (H&S) pattern in the daily time frame, which could lead to a significant rebound. The daily Relative Strength Index (RSI) has been forming a bullish divergence, indicating that the buyers are in control.
The demand for Ethereum among institutional investors has gradually increased recently, after inconsistent trends in September and August. The US spot Ether ETFs, led by BlackRock’s IBIT, have seen a net cash inflow of about $79 million since the start of this week.
Ethereum Whales and Market Dynamics
According to market data from CoinGlass, the supply of Ether on centralized exchanges decreased by nearly 3 million in the past 24 hours. The largest outflow of Ether was registered on Binance, Kraken, and OKX exchanges. However, on-chain data shows a notable Ether selloff in the past few days, which was deposited by unknown wallets to various exchanges led by Coinbase Global Inc (NASDAQ: COIN).
The Ethereum network has faced stiff competition from emerging layer one (L1) chains led by Solana, Avalanche, Binance Smart Chain (BSC), and Tron among others. Ethereum’s core developers, led by Vitalik Buterin, have been working on upgrades that will make Ether more user-friendly without compromising security, including lowering transaction fees. The use of layer twos to scale the Ethereum network has been praised but remains highly fragmented for mainstream adoption.
Crypto analyst Benjamin Cowen suggests that the supply of Ethereum will likely continue to drop in the coming months following the recent 50 bps Fed rate cut. Cowen noted that Ether’s supply has in the past been growing by 60k per month, but the demand has significantly increased in the last few weeks.
