Emily Walker
Within the Ethereum community, there is growing speculation regarding the possibility of a significant price surge to reach a new all-time high. Many are questioning why ETH has lagged behind other altcoins, attributing its delayed rally to factors such as reduced activity from wealthy investors.
Are Big Investors Losing Interest in Ethereum?
There are concerns among Ethereum’s whale investors as the volume of large transactions has not shown any meaningful increase during the current market cycle. According to IT Tech, a recognized contributor on the CryptoQuant platform, this trend reflects a decline in whale activity.
This situation suggests that high-net-worth individuals and institutional investors are still exhibiting caution, as the number of significant ETH transfers stays at a low level. A decrease in large transactions could pose challenges for ETH, given that whale activity often plays a crucial role in driving price increases.
IT Tech has pointed out that the volume of large transactions is notably low compared to previous cycles, such as in 2017 and 2021, when these types of transfers were frequent. This indicates that the current market is primarily influenced by retail investors rather than speculative behavior.
While there have been minor upticks in whale activity, the expert noted that they do not reach levels indicative of a market surge or liquidation. Furthermore, IT Tech advises investors to be vigilant for any unexpected increases in whale activities, as these tend to precede significant price shifts.
According to the analyst, Ethereum is currently on a gradual upward trajectory. However, substantial changes in market behavior will likely depend on movements from whale investors. ETH has recently regained the $3,000 level after a market pullback, establishing $3,500 as the next key resistance threshold.
To confirm a breakout past the $3,500 mark, IT Tech suggests that an uptick in large transaction volumes is essential. If ETH fails to see an increase in these transactions, it may enter a consolidation phase or experience a significant pullback.
IT Tech anticipates that if large transactions accompany signs of price weakness, ETH might pull back towards the $2,800 and $2,500 levels, leading to whale distribution which could drive prices lower. This subdued activity raises questions about the sustainability of ETH, creating uncertainty regarding its next substantial price movement.
Is ETH’s Uptrend Facing Potential Volatility?
Ethereum is currently trading between $3,000 and $3,200, displaying slight bullish momentum. However, cryptocurrency expert Titan of Crypto has identified a trend that could bolster Ethereum’s upward trajectory in the near future.
After analyzing ETH’s daily price chart, Titan of Crypto predicts a potential upswing following a breakout from a Falling Wedge pattern. This observation is compounded by an upcoming RSI bullish divergence, which could trigger further price increases toward significant resistance levels.
Though Ethereum shows signs of upward potential, the expert cautions that volatility may be on the horizon after the recent FOMC meeting.