The globe’s second-largest cryptocurrency Ethereum has displayed a robust upsurge above $2,900, experiencing a 4% gain in the past 24 hours amid whale accumulation. Since the onset of 2024, the Ethereum price has risen by 24% thus far, as the altcoin prepares for a further rally to $4,000.
Ethereum Whale Accumulation
The primary reason behind today’s Ethereum price surge is the significant whale accumulation. According to Lookonchain, an ETH whale initiated a series of transactions, commencing with the withdrawal of 100 million USDT from the popular exchange Binance. On the other hand, the investor allocated 60 million USDT in order to purchase 21,353 ETH at an average price of $2,810 per token. After this acquisition, an additional 10,649 ETH, equivalent to $30.68 million, was withdrawn from Binance exchange.
This recent transaction marks a continuation of the whale’s purchasing spree in the Ethereum market since February 8th. Over this period, the investor has amassed a total of 52,759 ETH, amounting to approximately $145.4 million, from both centralized exchanges (CEX) and decentralized exchanges (DEX).
The substantial Ethereum acquisitions by the whale investor underscore growing confidence in the digital asset’s potential amidst a period of market volatility.
ETH Price Confronts Major Resistance At $3,000
The enthusiasm among Ether bulls is palpable, with many viewing the $3,000 mark as an achievable target. However, historical data indicates that maintaining such a price level is no straightforward task.
A notable instance is observed three weeks prior to April 3, 2022, when ETH surged by 42%, soaring from $2,520 to $3,580. Yet, this rally was short-lived, as its price plummeted by 46% over the upcoming 40 days.
Conversely, market analysts have also been predicting a rally to $4,000 following the Dencun upgrade next month. Prominent crypto analyst Michael van de Poppe suggested that ETH might catch up to the Bitcoin gains in its surge to $4,000. As Bitcoin enters the consolidation phase, the momentum will shift to ETH.
#Ethereum is strengthening its momentum.
How do I know?
It’s flat against BTC, while Bitcoin ran from $45,000 to $52,000.
The momentum will shift toward Ethereum when Bitcoin consolidates and calms down.
Onwards to $3,500-4,000. pic.twitter.com/541qbeRKdk
— Michaël van de Poppe (@CryptoMichNL) February 15, 2024
Market Analysis
Given this precedent, traders are now cautious about whether Ether could undergo a comparable outcome in the current scenario. Moreover, there’s widespread optimism regarding the potential approval of the spot Ethereum ETF by May 23 this year. Recently, both VanEck and Kraken have entered the competition for these investment products.
At the same time, the SEC currently has numerous applications lined up for spot Ethereum ETFs. Following the recent approval of spot Bitcoin ETFs and their favorable reception, conventional investment firms have started showing a strong interest in Ethereum ETFs.
American multinational asset manager, BlackRock, has submitted also an application for an Ethereum ETF to the SEC. However, the regulator postponed this request and their decision, stating that they need some additional time to carefully consider the application and make sure to take an informed decision. Meanwhile, the SEC announced that it would postpone its decision on BlackRock’s iShares Ethereum Trust until the 10th of March 2024.
