Ethereum Whales Accumulate as RSI Rebounds to 58.6

Ethereum has shown signs of recovery following the Bybit hack, with its Relative Strength Index (RSI) rebounding to 58.6, indicating renewed buying pressure and potential for further price gains. This recovery is accompanied by an increase in whale accumulation, suggesting growing institutional confidence in the cryptocurrency.

The RSI recovery from its recent low of 39.2 signals a return of buying momentum for Ethereum. The RSI, a momentum oscillator, operates on a scale of 0 to 100, with significant thresholds at 30 and 70. A reading below 30 typically indicates an oversold condition, while a reading above 70 suggests overbought conditions. Ethereum's current RSI of 58.6 places it within a neutral zone but with a lean toward bullish momentum, suggesting potential for growth before reaching overbought levels.

The number of Ethereum whales – wallets holding a minimum of 1,000 ETH – has surged over the past month, increasing from 5,680 on January 25 to 5,828 on February 22. This uptick marks the highest whale activity since December 2023, indicating renewed interest and accumulation among significant holders. The rise in whale addresses suggests that institutional investors and high-net-worth individuals are progressively building positions, with expectations of future price gains, particularly following the decrease in ETH values around the Bybit incident.

Technical analysis of Ethereum's EMA lines suggests a potential golden cross formation on the horizon, which typically denotes a bullish trend and signals possible upward movement. If this golden cross occurs, ETH could initially challenge a resistance level near its long-term EMA line around $2,876. A breakout past this threshold could pave the way toward a move to $3,020, and potentially even higher to $3,442 if strong upward momentum continues.

However, Ethereum has faced challenges in reclaiming levels above $2,900 in several recent attempts, indicating a degree of resistance and market indecision. Should it fail to surpass this level again and a downward trend materializes, ETH's price could test the support level at $2,551. Breaching this support could lead to a sharper decline, potentially dropping to $2,159.