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Will Ethereum’s Surge Follow a $135M Whale Buying Spree? How to Benefit
As the crypto market anticipates the Federal Open Market Committee (FOMC) meeting, Ethereum (ETH) finds itself at a crucial juncture. Recent ethereum news highlights the cryptocurrency’s struggle to maintain the critical support level around $4,000. Despite recent volatility, analysts are optimistic that the “King of Altcoins” may soon embark on a significant price discovery rally, particularly as large-scale investors, or whales, are making substantial investments.
On Wednesday, Ethereum dipped below the $4,000 mark, reaching a low of $3,926 over the past two days. Following a remarkable rally in the third quarter, ETH has faced difficulty holding this vital psychological barrier. The asset has struggled to reclaim the $4,200 resistance throughout October. Earlier this week, Ethereum attempted to retest this resistance level after a 7% surge over the weekend, but it retraced alongside market trends on Tuesday.
Ethereum’s Key Price Levels to Watch
Analysts assert that Ethereum is likely to experience increased volatility, particularly in light of the Federal Reserve’s interest rate cut announcements. Market observers like Daan Crypto Trades emphasize that ETH’s crucial test lies around its previous cycle highs near the $4,100 level. This threshold must be broken and held to signal bullish momentum returning to the market. Conversely, a rejection from this area may lead to a retest of $3,800, potentially transforming it into significant resistance on larger timeframes.
Despite these fluctuations, some analysts express optimism for Ethereum’s future. Crypto Yhodda notes that Ethereum appears to be “getting ready for the last euphoric run,” drawing parallels to its price action in 2021. During that period, the altcoin experienced a monumental price discovery rally following a prolonged four-year consolidation phase. Similarly, analyst Crypto Jelle mentions the expected shakeouts at key support levels, suggesting that Ethereum’s rally appears promising.
Bullish Patterns and Whale Activity
Jelle points to an 18-month bullish megaphone formation on Ethereum’s chart, which broke out during the Q3 rally. The analyst underlines that ETH continues to hold previous highs and breakout levels as support, indicating a possible “hated rally” toward an ambitious $8,000 target that could materialize soon.
Adding to the bullish sentiment, recent reports indicate that large-scale investors are increasing their Ethereum holdings despite the cryptocurrency’s recent pullback. Data from on-chain analytics reveals that whales accumulated 218,470 ETH over the last week, signaling a gradual re-entry into the market by major investors. Lookonchain further highlighted that, within the past 24 hours, whales acquired a total of 33,948 ETH, valued at approximately $135 million, from a digital asset prime brokerage.
A notable aspect of this buying spree is linked to BitMine, the largest Ethereum-based treasury company, which recently disclosed additional purchases totaling 27,316 ETH, worth $113 million. This update indicates that BitMine’s total holdings now exceed 3.3 million ETH, reflecting a strategic approach to accumulate 5% of Ethereum’s total supply. Currently, BitMine holds around 2.75% of the total supply, working diligently towards its goal.
Conclusion: How to Participate in Ethereum’s Potential Rally
As ETH trades at $3,990, marking a 3.5% decline for the day, investors should remain vigilant. The ongoing whale activity and bullish patterns suggest potential upward momentum. For those looking to engage in the evolving landscape of cryptocurrencies, keeping an eye on these developments is crucial. Explore more insights and updates in the crypto section of our site.
To stay informed about the latest trends and trading opportunities, consider diversifying your portfolio. Platforms like Binance offer various options for crypto trading, making it easier to capitalize on market movements.
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