Although Ethereum’s price action in the current bullish phase has not been as strong as Bitcoin, Solana, and XRP, which have reached new all-time highs, there remains a sense of optimism about its future price potential. This is reflected in the ongoing accumulation of the cryptocurrency.
Growing Investor Confidence in Ethereum
Even though Ethereum is struggling to spark a substantial price increase, investor sentiment appears to be improving. In recent weeks, there has been a notable uptick in ETH accumulation among investors.
Technical analyst Kyle Doops, from the Crypto Banter Show, highlighted this trend after reviewing the Ethereum New Accumulation metric. His findings indicate an increase in wallet activities, with both smaller and larger investors boosting their ETH holdings.
According to the expert, this trend showcases steadfast investor confidence despite market fluctuations. The growing interest indicates a strong belief in ETH’s long-term potential, drawing in both institutional and retail investors.
Ethereum’s development, coupled with its leadership in Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs), likely contributes to this continued accumulation. Should this accumulation persist, it might signal the start of a significant price shift for the altcoin.
Nevertheless, insufficient market performance poses challenges to its growth in the near term. Despite the current market uncertainties, Kyle Doops remains optimistic about Ethereum’s future, reflecting his belief in the asset’s capabilities.
This notable investor engagement is further shown by an increase in the Ethereum Estimated Leverage Ratio, which has been rising recently. An increase in this metric points to elevated risk as traders take on larger leveraged positions.
As ETH stabilizes within the $3,200 to $3,500 range, the increase in high-leverage positions suggests a possible upcoming bullish breakout according to Kyle Doops. However, he cautions investors to remain vigilant, as high leverage could lead to liquidations and increased market volatility, which have occurred in the past.
Is a Major Rally Imminent for ETH?
ETH faces considerable resistance at the $3,500 mark, creating uncertainty regarding its next price movements. Nonetheless, trader and market expert Milkybull expresses confidence in ETH’s trajectory, predicting a push towards unprecedented highs.
In analyzing ETH’s one-month chart, the analyst forecasts that ETH is gearing up for a significant rise towards the $12,000 milestone, marked by a Rising Wedge pattern, typically associated with significant price increases.
At present, ETH is priced at $3,381, showing a nearly 5% increase over the last 24 hours. Investors seem optimistic, as indicated by a trading volume surge of over 60% within the past day.
