Ethereum Surges 7% Amidst Growing Whale Activity and Bullish Technical Signals

Ethereum's price has surged by 7% to reach $3,261, with market sentiment improving and on-chain data indicating strong buying confidence from large investors. The recent rally follows a pattern of recovery after periods of market volatility, particularly following FOMC announcements. Ethereum has demonstrated notable price rebounds during these periods, with gains ranging from 14% to 34%.

Ethereum's price movements align with the identified capitulation dates, and the cryptocurrency has already shown a promising 5.35% increase since the last FOMC announcement. This trend suggests potential for continued growth in the coming weeks, with Ethereum potentially reaching $3,800 amidst global economic fluctuations.

Whale activity has been on the rise, with significant capitulation events occurring on January 13 and January 27. Since January 21, Ethereum wallets with capacities ranging from 1,000 to 10,000 ETH have amassed 100,000 ETH, while larger wallets, holding between 10,000 and 100,000 ETH, added 300,000 ETH. The largest wallets, containing 100k to 1 million ETH, have seen an increase of 900k ETH, representing a significant concentration of wealth.

Technical analysis suggests a potential bullish trend for Ethereum, as it is currently in a falling wedge formation. If the pattern holds, the significant target of $4,000 is within reach. Key resistance levels to monitor for potential profit-taking are $3,322, $3,592, and the pivotal $4,000 mark. The immediate support levels to watch are $3,182 and $3,057. If Ethereum's price breaks below these supports, there could be a steep decline, with prices dropping around 13% to hit the $2,657 level.