Ethereum surges past $2,350 resistance as whales accumulate 932,790 ETH
1min read Ethereum has experienced significant volatility over the past two weeks, with its price fluctuating between a local high of $2,700 and a low below $2,000. This price movement has left key stakeholders with differing opinions, with some remaining optimistic about the altcoin's future. One such optimistic voice is Ali Martinez, a crypto analyst who suggests that Ethereum could potentially rally to $3,260, citing pricing bands and the MVRV (Market Value to Realized Value) ratio.
Martinez's analysis indicates that the current market conditions have established $2,350 as a crucial resistance level for Ethereum. If the altcoin can break through this level and sustain a price above it, it could trigger significant buying momentum, potentially pushing the price towards the next significant level around $3,260. Reclaiming this level could have a psychological impact, confirming a bullish trend shift and encouraging investors to take long positions.
Historically, buying Ethereum when its price drops below its MVRV has proven to be a profitable strategy, a trend that has persisted since 2016. The recent decline in Ethereum's price has created a perfect buying opportunity, as evidenced by the altcoin's negative exchange netflows over the past four days. This negative netflow indicates that buyers are dominating the market, with more exchange outflows than inflows.
Whale activity has also been a significant factor in the recent buying spree. According to data from IntoTheBlock, Ethereum whales have accumulated over 932,790 ETH tokens in the past day. Large holders' netflows have spiked to 474,890, suggesting more capital inflows from whales than outflows. This accumulation by whales indicates strong bullish sentiments, as they anticipate the price to rebound, making the dip an ideal buying opportunity.
The rising funding rate further supports this bullish outlook. The funding rate has climbed to a weekly high of 0.01, implying that traders are paying funding fees to hold their long positions. This uptick, backed by increased accumulation, supports a potential price rally.
In conclusion, Ethereum's buyers, including both whales and retailers, have entered the market. With sellers appearing exhausted, Ethereum may be well-positioned for recovery. If the demand witnessed over the past day holds, Ethereum could reclaim $2 