Whale Activity Increased: Could Ethereum Price Hit $5K Soon?

• ETH price attempted twice to surpass the $4K mark in a week but couldn’t.
• Ethereum price has triggered a pullback by defending the 20-day EMA.
• ETH whales are accumulating Ethereum tokens, which could lead to a bullish forecast.

Ethereum’s (ETH) price has been wandering near a major resistance zone of $4K in a broader time frame. This zone was a supply zone, and the price has shown price rejection thrice this year. However, the current market sentiment was bullish and rose by taking support on the 20-day EMA.

Some ETH whales were staking the Ethereum token in their wallet. The accumulation of ETH tokens could positively impact the Ethereum price. It would lead to a strong breakout from the resistance zone and may lift the price to the $5K hurdle.

ETH Whales Staking: Could It Lead to a Bullish Rally?

On-chain indicators indicate that there is now more demand for Ethereum. Some whales have accumulated cryptocurrency in their wallets as a result.

According to Santiment, 57.35% of the ETH crypto supply is held by wallets with more than 100,000 tokens. These 104 wallets’ combined holdings of about $333 billion in Ethereum demonstrate their dominance in value swings.

The mid-tier wallets, which hold between 100 and 100,000 ETH, have dropped to their lowest point ever. With it, 33.46% of the entire supply is covered.

Additionally, only 9.19% of wallets had balances under 100 ETH. In the last four years, this percentage has never been lower. This consolidation among the top stockholders is viewed as positive by analysts.

ETH Price Behavior Near $4000 Hurdle

When writing, the Ethereum price was trading at $386.00. The token has dived by 0.63% over the past 24 hours. The market capitalization was $465.58 Billion, and the 24-hour trading volume was $37.26 Billion.

The price has been bullish. It has tried twice to overcome the $4000 territory. However, sellers are stronger. Here, the current sentiment could play a crucial role in the breakout.

Suppose the price surpasses the $4K hurdle; it could tempt bulls. After a breakout, the price would reach a multi-year high. Buyers may eye the new ATH if the ETH price overcomes the $4500 zone. According to the technical analysis, the price is expected to hit $5K.

Conversely, if the price feces resistance from the $4K, it could be a selling signal. Here, sellers might show their confidence and lead the trend. A profit booking scenario can be generated once the price loses the 20-day EMA. Suppose sellers dominate; the price is expected to melt to the $2K mark.

Turning to the technical indicators, RSI has tested RSI-based moving averages and falling. MACD has triggered a bearish crossover with the Signal line, and the histograms have turned red. That demonstrated a bearish forecast.

ETH Price Analysis and Whales Accumulation

Ethereum price action showed a mix of cautious optimism and potential bearish sentiment. With ETH whales accumulating and staking significant amounts, there is hope for a bullish breakout past the $4K resistance level.

However, the market has faced challenges, with sellers remaining strong in the $4K zone. If Ethereum can break through this hurdle, it may set the stage for a move toward the $5K target.

Conversely, failing to overcome this resistance could trigger selling pressure, threatening a dip to the $2K mark. The technical indicators, including the RSI and MACD, lean toward a bearish outlook. It suggested that the traders should closely monitor market movements.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.