Ethereum
Ethereum price: 2 reasons why the price of ETH is increasing?
The long awaited Bitcoin halved is finally finished, after Ethereum (ETH) has seen slow growth amid the recent stock market crash. This was partly fueled by dwindling expectations that the SEC would approve Ethereum ETFs in May. ETH saw losses of 15% just over a week ago, lose ground to Bitcoin. While there was no immediate reaction to the halving of major cryptocurrencies, including Bitcoin itself, Ethereum (ETH) has since seen a roughly 0.8% rise in value Merchant. As investors and enthusiasts closely watch the next move of Bitcoin and altcoins, let’s find out why Ethereum price is rising.
Current Market Performance of Ethereum Price
Over the past day, Ethereum price increased by 1.39% to $3,214.11. This increase maintains a favorable trend over the week, up 2.16%, but shows a decrease of 8.40% over the month. This shows potential volatility and a long-term market correction.
Ethereum holds the second position in terms of market capitalization, according to CoinMarketCap, for an amount of 385.8 billion dollars. The token saw a slight increase of around 1.8% in trading activity, recording a trading volume of $10.16 billion in the last 24 hours.
ETH is trading between a low of $3,119.55 and a high of $3,210.30, indicating moderate volatility during the day. However, compared to its all-time high of $4,891.70 reached on November 16, 2021, the token recorded losses of 34.69%, indicating a notable pullback from its highest point.
Whale activity
The recent Ethereum price surge is highlighted by large on-chain transactions, particularly one involving a substantial withdrawal of 10,119 ETH from Binance, indicative of notable activity from Ethereum whales. According to Lookonchain The investor has been gradually accumulating Ethereum, amassing a total of 127,388 ETH since April 8, for a total of approximately $405.19 million.
Notably, this whale’s average purchase price, standing at $3,172 per ETH, signals a long-term bullish outlook on Ethereum’s market potential.
Added to the rumors is the participation of Justin Sunthe creator of Tron (TRX), a well-known figure in the crypto world recognized for his financial projects and public remarks. The claims imply that Sun purchased Ethereum, with evidence suggesting that a wallet linked to it would have accumulated a substantial amount of ETH since early April.
This wallet’s activity aligns with a trend seen beginning March 31, in which large sums of stablecoins moved from Binance to Ethereum, followed by substantial purchases of ETH from Binance and decentralized exchanges (DEX).
Similarities in transaction behavior between this wallet and another previously linked to Justin Sun, which acquired Ethereum in February, further support speculation that Sun may indeed be behind these transactions.
In total, suspect wallets attributed to Sun have allegedly acquired 295,757 ETH, valued at approximately $891 million, since February 12, at an average price of $3,014 per ETH.
These transactions, coupled with continued interest and investments from figures such as Justin Sun, are contributing to the upward pressure on Ethereum’s price.
Currently, Ethereum is still trading at $3,206.30, indicating current market trends and investor sentiments towards the digital currency. The participation of powerful people like Sun illustrates the evolving interactions within the Ethereum community, highlighting its importance and the possibility of further expansion.
Strong Support Levels and Bullish Technical Patterns
Various crucial factors can be attributed to the recent rise in Ethereum price. During the pre-halving consolidation phase in the broader cryptocurrency market, Ethereum managed to maintain its position above the important $2,875 level. This level aligns with the 38.2% Fibonacci retracement level, giving buyers a solid base to take charge of market direction.
Furthermore, the fort withdrawal observed during Bitcoin’s halving phase helped boost Ethereum’s price, pushing it to peak at $3,198. After further analysis of the 4-hour chart, it is evident that a double bottom pattern has emerged, which is a common technical formation seen at the end of a downtrend, indicating the possibility of a substantial increase prices. This trend, along with strong market dynamics, has boosted buyer confidence.
With Ethereum price showing positive momentum, it is hoped that it will surpass the key resistance level of $3,300, thereby strengthening buyer confidence and possibly prolonging the recovery process. If this breakout occurs, Ethereum could reach higher price levels, with forecasts suggesting a potential rise to $3,730 and then $4,100.
Conclusion
As Ethereum continues to defy market pressures, its resilience above key support levels and the formation of bullish technical patterns signal a potential upward trend. As buyers eye critical resistance levels, the stage is set for further near-term price appreciation.