Speculations about Ethereum’s potential for a major upswing to a new all-time high in the ongoing cycle swells within the community as many wonder why ETH has underperformed compared to other altcoins. Several factors have been considered to have hindered ETH’s much-awaited rally including weak whale activity.
Is Large Investors’ Interest In Ethereum Fading?
The euphoria among whale Ethereum investors sparks worries as large-scale transaction volume fails to show any significant increase in the ongoing market cycle. Verified author at the CryptoQuant on-chain platform IT Tech underlined the negative trend, suggesting a lack of strong whale activity.
The development implies that high net worth and institutional investors are still cautious as major ETH transfers remain at a low range. With large transactions fading, ETH may face significant hurdles since whale activity typically fuels price increases.
IT Tech considers Ethereum’s large transactions to be low in contrast to past cycles such as 2017 and 2021, where these transfers were rampant. This goes to say that the market is more retail-driven and organic, rather than speculative mania.
While there have been small increases in whale activity, the expert outlined that they are not at levels that would indicate a sell-off or parabolic move. In the meantime, IT Tech urges investors to look out for unexpected spikes in whale activity since they typically come before significant price changes.
According to the expert, Ethereum is experiencing a gradual upward trend. However, the next significant change in market dynamics will be determined by whale movements. Presently, the altcoin has reclaimed the $3,000 mark as prices recover after a general market pullback, bringing the next crucial resistance point at $3,500.
In order to confirm a break through the $3,500 mark, IT Tech claims there must be an increase in large transaction volume. If ETH does not see a rise in these transactions, it could witness a consolidation phase or a notable pullback.
IT Tech expects a pullback toward the $2,800 and $2,500 level if the large transaction coincides with price weakness, which might lead to whale distribution and cause ETH to drop. With this subdued movement, ETH’s sustainability is being questioned, triggering uncertainty about its next big price action.
ETH’s Uptrend Set To Face Volatility?
ETH is hovering between $3,000 and $3,200 with slight bullish momentum. Nonetheless, crypto expert and trader, Titan of Crypto has identified a trend that might strengthen Ethereum’s upward movement in the coming days.
Examining ETH’s price on the daily chart, Titan of Crypto expects an upswing following a breakout from a Falling Wedge pattern. This pattern is supported by an impending RSI bullish divergence, which could fuel more price spikes toward key resistance levels.
Even though Ethereum is demonstrating upside potential, the expert believes that volatility may unfold shortly after the recently concluded FOMC meeting.
Featured image from Unsplash, chart from Tradingview.com
