Ethereum is gaining momentum, crossing the $3,900 mark and eyeing a potential breakout rally. Despite whale sell-offs, Ethereum shows bullish gears up for a potential run to $4,631, with a projected extension of 35%.
By Vishal Dixit
Edited by Julia Sakovich
Updated
3 mins read
Crossing above the $3,900 market price, Ethereum ETH $3 271 24h volatility: 5.0% Market cap: $393.97 B Vol. 24h: $34.25 B inches to its 52-week high at $4,093. Closing the gap with high momentum, the current price of Ethereum, $3,918, is at a ~4% discount from the annual highest price.
The Ethereum rally marks the third positive week, accounting for a price jump of ~28%. Further, it increases the possibility of a triple white soldier pattern, a trend continuation pattern, in the weekly chart.
The market cap of Ethereum has reached $472 billion and records a trading volume (24H) of $65.92B. As the numbers turn green, analysts anticipate the rally to create a new 52-week this week amid the whale sell-off.
Amid the growing rally of Ethereum, multiple whales have started to book profit. The trending name comes from Justin Sun, the founder of the Tron blockchain, who recently deposited 20,000 ETH tokens over the HTX exchange.
The deposit is worth $76.3 million after Ethereum market price surged above $3,800. Justin Sun’s offloading spree has been news in the crypto market since the early November rally, accounting for 41,630 ETH worth $146 million.
In total, 39,000 Ether worth $137 million were deposited over HTX, and the remaining tokens worth $8.76 million were deposited to Poloniex. The average price of the selling spree is $3,505.
Despite the sell-off, the Ethereum rally gains momentum and eyes a breakout run as ETFs show increased institutional demand.
With Bitcoin BTC $103 344 24h volatility: 1.5% Market cap: $2.05 T Vol. 24h: $58.32 B crossing above the $100,000 mark, the total daily net inflow reached $556.82 million. Leading the pack, BlackRock’s Bitcoin ETF recorded a net inflow of $571.71 million.
Amid the improving crypto market sentiments, the institutional demand for Ethereum is gradually increasing. This is reflected by the daily total net inflow on December 4, reaching $167.62 million for US spot Ethereum ETFs.
Similar to Bitcoin, BlackRock’s Ethereum ETF spearheaded a rally with a one-day net inflow of $124.35 million. Amid the rising demands, the Ethereum price action shows a potential new 52-week high on the horizon.
In the weekly chart, the Ethereum price action showcases a rounding bottom reversal gaining momentum. Following the Q2 pullback, the Ethereum price regained bullish momentum in Q3, rebounding from the 200-week EMA at $2,355.
Source: Tradingview
The price of Ethereum has surged by nearly 66% over the past 30 days. This results in four bullish candles in the weekly chart, with a minor red candle.
The Ethereum price action currently showcases the weekly candle surpassing the crucial resistance zone below the $3,900 level. Further, the Ethereum price heads to challenge the 100% Fibonacci level at the 52-week high of $4,093.
With a 5.78% jump this week, the massive surge in trend momentum is increasing the chances of a new all-time high. Reflecting the surge in momentum, the weekly ADX line witnesses a minor uptick, while the VI line in the DMI indicator maintains a positive alignment.
Hence, the technical indicator showcases a bullish trend gaining momentum. Furthermore, the 100-week and 200-week simple moving average lines reveal a positive crossover. This marks a change in Ethereum’s long-term price action, increasing the chances of a bull run.
The Fibonacci levels retraced between the 52-week high and low project the next potential price targets at $4,631 and $5,316. Hence, Ethereum’s weekly price action shows an upside potential of 35%.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
