- Ethereum, at press time, was trading at a key level on the daily time frame
- Institutions and whales are back in business as optimism returns to the market
Ethereum (ETH), the second largest cryptocurrency on the market, is trading at critical levels again. These levels are particularly important for long-term investors. At the time of writing, ETH was hovering around the $2,700 range – an important resistance level on the daily time frame.
Price levels from the previous month now act as key areas of support and resistance. ETH respects the previous month’s low as support, while the midpoint between the previous month’s high and low acts as resistance.
Market sentiment remains optimistic, suggesting a potential breakout above the $2,700 resistance. This could push ETH to target the $3,200 level. However, market dynamics remain unpredictable and any sudden changes could alter this outlook.
Source: Hyblock Capital, TradingView
Increased activity of whales and institutions
Increased institutional and whale activity has also supported the case for a higher ETH price. Recently, an Ethereum whale that had been silent for four months cashed out 12,979 ETH, making a profit of $34.3 million.
This whale initially purchased ETH at just $7.07 per token. Since then, this whale has sold a total of 15,879 ETH, generating a profit of $43.5 million.
As this whale still holds 5,760 ETH worth around $15.5 million, this means the biggest investors are betting on ETH hitting the $3,200 target. This renewed whale activity is a strong indicator of ETH’s upside potential, further supporting the $3,200 target.
Source: SpotOnChain
At the same time, institutional actions also influence the market.
Two major institutions recently offloaded ETH. Cumberland, a trading company, deposited 11,800 ETH, worth $31.88 million, into Coinbase. On the contrary, ParaFi Capital withdrew 5,134 ETH from Lido and transferred it to Coinbase Prime.
Despite this selling activity, the increase in whale participation is a sign that many are still optimistic about Ethereum’s future price action.
Hike Total ETH Addresses with Balance
Another positive signal for ETH is the increase in the total number of addresses holding a balance. The growing number of wallet addresses is a strong indicator that more investors are entering the Ethereum ecosystem.
This trend is often seen as a bullish signal, suggesting that Ethereum adoption is increasing due to its utility in decentralized finance (DeFi) and scalability solutions.
Source: In the block
The rise in wallet addresses can be interpreted as another bullish signal hinting at ETH’s $3,200 price target in the final quarter of the year. This period is historically known for bullish activity in the crypto market.
Fear and Greed Index is now neutral
Market optimism is also reflected in the Fear and Greed Index, which has risen to a neutral value of 50 at press time. This is a positive change after a long period of extreme fear, particularly following the August 5 stock market crash.
As the market begins to recover, more traders will likely be attracted to ETH, making this a great time to accumulate more ETH ahead of the expected upward move.
Historically, entering the market while it displays neutral sentiment provides better opportunities than waiting for extreme greed. This often signals market tops.
Source: In the cryptoverse
Right now, Ethereum is positioned to rise, thanks to whale activity, increased adoption, and improving market sentiment.
If ETH manages to break through the $2,700 resistance, the next target of $3,200 could be within reach.
