Ethereum’s strength is once again building, reflected in its price as it continues to rise for the fourth consecutive day. The asset appears poised to maintain this momentum in the coming days.
On the 4th of January, Ethereum’s price jumped 1.35% over the past 24 hours and, trading at the $3,140 level at press time.
Despite the upward price movement, traders and investors appeared hesitant to participate, as recorded in the trading volume, which declined 52% to $12.40 billion.
Whales, institutions ramp up ETH accumulation
Amid this, long-term holders such as whales and institutions have shown strong interest in the asset, as shared by on-chain analytics firm Onchain Lens.
In a recent post on X, Onchain Lens noted that a crypto whale withdrew a massive 20,000 ETH worth $62.30 million from multiple crypto exchanges, including Coinbase, Galaxy Digital, FalconX, and Cumberland.
Meanwhile, Ethereum giant Bitmine staked more than 49,088 ETH worth $152.7 million.
For context, crypto withdrawals from exchanges suggest potential accumulation, whereas staking an asset points to its strong long-term potential.
Apart from this, Wall Street investors also showed strong interest in ETH, as recorded in spot Ethereum Exchange-Traded Funds (ETFs).
According to analytics platform SoSoValue, on the 2nd of January, investors and institutions poured more than $174.43 million into these ETFs.
Source: SoSoValue
All these activities are currently strengthening ETH’s bullish outlook and raise the question of whether this is an ideal buying opportunity or if the price could fall again.
Ethereum price action and key levels to watch
AMBCrypto’s technical analysis discloses that ETH has formed a symmetrical triangle pattern on the daily chart and is on the verge of a breakout.
Following today’s modest price uptick, the asset has reached the breakout level and is currently facing resistance from a descending trendline along with a horizontal level at $3,150.
Source: TradingView
Based on recent price action, if ETH successfully breaches the resistance and breaks out of the triangle pattern, it could open the door for another 6% upside move and potentially reach the $3,600 level.
Despite the bullish outlook, the Average Directional Index (ADX) (a technical indicator that measures trend strength) stands at 23.37, below the key threshold of 25, indicating that ETH currently has weak directional momentum.
Strong tug-of-war between bulls and bears
At the intraday level, a significant tug-of-war is unfolding between bulls and bears.
Data from derivatives analytics platform CoinGlass revealed that intraday traders were heavily overleveraged at $3,114.8 on the downside and $3,177.5 on the upside.
At these levels, traders have built $244.93 million worth of long leveraged positions and $245.02 million worth of short leveraged positions. These bets highlight mixed sentiment among intraday traders.
Source: Coinglass
Final Thoughts
- Ethereum could jump another 6% and reach the $3,600 level if it clears and closes a daily candle above $3,150.
- Long-term holders, ranging from whales to Wall Street investors, have shown strong interest in ETH, suggesting a potential buying opportunity.
Source: https://ambcrypto.com/ethereum-is-climbing-whales-are-buying-what-happens-next/
