Ethereum (ETH), the second-largest cryptocurrency in the market, is once again at a crucial juncture, with significant implications for long-term investors. Currently, ETH is trading around the $2,700 mark – a key resistance level observed on the daily chart.
The price levels from the previous month are now playing a vital role as support and resistance zones. ETH is finding support at the previous month’s low while encountering resistance at the midpoint between the high and low of the same period.
Market sentiment is positive, hinting at a potential breakthrough above the $2,700 resistance level. If successful, this could propel ETH towards the $3,200 mark. Nonetheless, the dynamic nature of the market means that unforeseen changes could alter this scenario.
Surge in Whale and Institutional Activity
Increased activity from whales and institutions is providing additional support for a higher ETH price. Recently, an Ethereum whale, dormant for four months, offloaded 12,979 ETH, generating a profit of $34.3 million.
Having initially purchased ETH at just $7.07 per token, this whale has now sold a total of 15,879 ETH, accumulating profits of $43.5 million. With 5,760 ETH still held, valued at approximately $15.5 million, it indicates that prominent investors are banking on ETH reaching the $3,200 target. This resurgence in whale activity serves as a robust indicator of Ethereum’s bullish momentum, reinforcing the $3,200 objective.
Concurrently, institutional moves are also influencing market dynamics.
Two major institutions have been involved in ETH transactions recently. Cumberland, a trading entity, deposited 11,800 ETH worth $31.88 million into Coinbase. Conversely, ParaFi Capital withdrew 5,134 ETH from Lido and shifted it to Coinbase Prime.
Despite these sell-offs, the increased involvement of whales suggests continued optimism regarding Ethereum’s future price trajectory.
Rise in ETH Wallet Addresses with Balances
An encouraging development for ETH is the uptick in the total number of addresses holding ETH balances. The expanding network of wallet addresses signifies a growing interest from investors in the Ethereum ecosystem.
This surge is often interpreted positively, underscoring Ethereum’s expanding adoption in decentralized finance (DeFi) and scalability solutions.
The escalating number of wallet addresses presents another bullish sign, pointing towards the $3,200 price projection for ETH in the fourth quarter, historically known for its bullish activities in the crypto space.
Fear and Greed Index Stabilizing at Neutral
The market’s positive outlook is evident in the Fear and Greed Index, which now stands at a neutral level of 50. This shift follows a prolonged period of extreme fear, notably after the market crash on August 5.
With the market showing signs of recovery, more traders are likely to gravitate towards ETH, making it an opportune time to accumulate more ETH before the anticipated bullish phase.
Historically, entering the market during a neutral sentiment phase often offers better prospects compared to waiting for periods of extreme greed, which typically signal market peaks.
Currently, Ethereum is primed for an upward trajectory, supported by whale activities, growing adoption, and improving market sentiment.
A successful breakthrough above the $2,700 barrier could pave the way for a potential target of $3,200.