ETH, the native cryptocurrency of the Ethereum network records a slight downtick of -0.77% during Friday’s trading session, to currently trade at $1,968. This overhead selling pressure signals the continuation of the ongoing consolidation trend and restricts price recovery above $2,000. However, here are three reasons why Ether’s price could reclaim $3,000 in the coming weeks.
According to CoinGecko, the ETH market cap is currently at $237.1 Billion, while the 24-hour trading wavers around $10.1 Billion.
Key Highlights:
- A recent whale purchase of 7,074 ETH, valued at $13.8 million, demonstrates strong confidence in Ether’s long-term potential
- A steady uptrend in Ethereum’s number of addresses indi.cate increasing adoption and strong investors’ confidence towards this asset.
- A negative alignment between the daily EMAs (20 < 50 < 100 < 200) suggests the path to least resistance is down.
Whale Activity Signals Buy-the-Dip Sentiment
Over the past three months, the Ethereum price has plunged from $4,108 to $1,968 current trading value, registering a loss of 52%. This indicates significant underperformance of ETH to the broader crypto market as Bitcoin price is 23% down from its all-time high of $109,233.
Despite the mounting selling pressure and bearish sentiment, whale investors demonstrated strong confidence in the asset’s growth potential as onchain data recorded a substantial purchase of 7,074 ETH, worth $13.8 million, today.
According to the post, the whale first withdrew a hefty 4,511 ETH (worth $8.81 million) from the OKX exchange about three hours ago. Shortly after, the whale deposited the funds into Aave, a decentralized lending protocol. But the activity didn’t stop there. The whale borrowed 5 million USDT from Aave to buy another 2,563 ETH, worth approximately $5 million, which was also deposited into the OKX exchange.
The increasing accumulation from whales as ETH trades at a discounted value indicates buy-the-dip sentiment in the market. Historically, this behavior has resulted in major bottom formation and sustained recovery trends.
Ethereum Addresses with a Balance Reach 130.42 Million
According to intotheblock data, the Ethereum total Addresses with balance have shown consistent linear growth since early 2017, reaching a current high of 130.42 Million. This trend highlights Ethereum’s growing adoption, with more users actively holding ETH rather than keeping their wallets inactive.
The steady increase in addresses with a balance suggests strong investor confidence and long-term holding behavior, often indicative of a more stable and resilient market. If the trend sustains, the native cryptocurrency ETH should witness natural demand and a steady bullish trend.
Bear Trap Signals Potential Rally to $3,000
On March 9th, the Ethereum price gave a decisive breakdown below the $2,100 support and 61.8% Fibonacci retracement level. This breakdown was expected to accelerate the market selling pressure and prolong the correction trend but instead, the price trajectory shifted sideways.
Since then, the ETH price has been wavering sideways with short-bodied candles in the daily chart indicating no clear dominance from buyers or sellers. However, the lack of follow-up on the downside indicates some weakness in sellers’ conviction and the risk of a potential bear trap.
If true, the coin price is likely to rebound and regain a daily candle closing above $2,100. The potential upswing could extend 18% before challenging the major downsloping resistance at $2.500.
A potential breakout from this barrier will strengthen buyers’ grip over this asset and drive a higher rally to $3,000.
On the contrary, if sellers continue to defend the descending trendline, the altcoins could witness renewed selling pressure and prolong the correction trend.
Also Read: Illegal Exchanges Face Sanctions in South Korea’s Crypto Crackdown
