Following a period of waiting and a 62% decline in gains after the election, Ethereum [ETH] investors now have a reason to rejoice.
As Bitcoin achieves a new peak, ETH has experienced a significant increase, returning 7.57 million addresses – those who purchased when prices were up to $3,367 – to profitability.
With a growing momentum, is it possible that another 23.5 million addresses will soon benefit from these profits? The stage is set for Ethereum’s potential upward trajectory.
Potential to Surpass $4,000?
A rise in the market cap by 3.22% due to the Trump news has pushed the market to an all-time high. A modest 7% increase could lead to a $4 billion boost in market value.
Ethereum is not lagging far behind, with a gain of over 4% and indications from the RSI pointing towards further possible increases.
The crucial question remains: Will the bulls respond to this situation? The ETH/BTC pair is observing a decline, accompanied by the MACD signaling a bearish trend.
Currently, it appears that investors, especially those in the U.S., are leaning towards Bitcoin for higher profits, given Ethereum’s negative Coinbase Premium Index (CPI).
Yet, major holders are not selling off. Over the last three days, a significant amount of 289.9K ETH has been moved from exchanges into large wallets.
Noteworthy is the recent acquisition of over 15K ETH at $3,333 by the Trump family’s World Liberty Financial in the last 12 hours. The 24-hour rally of Ethereum can be attributed to this significant accumulation.
With Futures market traders entering the scene, Open Interest (OI) has surged by 5%, surpassing $30 billion – a level unseen even during the prior Trump rally.
Nevertheless, long liquidations are increasing, resulting in the elimination of $3.82 million in just four hours.
Clearly, Ethereum’s price is highly volatile, and a significant downturn could occur once profit-taking begins.
Hence, achieving the $4,000 mark will require “stability”, which should be closely monitored in the days ahead.
Sustainability of Ethereum’s Growth: Is it Sustainable?
The price behavior of Ethereum has been erratic. Despite buyers entering during price declines, the anticipated breakout is yet to occur.
With 43.33% of ETH being controlled by whales, the market seems to be stuck in a familiar cycle of manipulation.
Thus, it wouldn’t be surprising if this recent accumulation proves to be merely another false dawn.
In this uncertain market, the patience of investors is truly being tested. The 5% increase has offered some relief, but for 23.5 million investors, the path to profitability might stretch longer.
With Bitcoin reaching new highs, Ethereum might follow suit, with a potential target of $3,600 soon or even a repetition of the post-election rally to hit $4,000. However, sustaining that level remains a distant objective.
Consistent positive price movements are essential for Ethereum to break out of its current stagnant phase.