Ethereum (ETH) price has seen a phenomenal surge, recording a 20% increase over the past week. This growth was partly driven by significant ETH withdrawals from exchanges, indicating growing confidence among holders. Accumulation from ‘whales’ has also accelerated, hinting at growing optimism.
However, with recent mild corrections, ETH is now at a decisive threshold, testing support and resistance levels to determine its next move.
ETH net transfer volume reached 128K on November 10
ETH has had a strong rally, climbing 20.10% in the past 7 days. More than 361K ETH left exchanges on October 25 – a massive withdrawal, pointing to increased confidence among holders before the current rally took place.
Such a large move usually shows that investors are moving their assets into personal wallets, hinting that they may be planning to hold rather than sell.
When a large amount of coins leave the exchange, it is usually positive because it shows that users are less likely to sell. Conversely, when large amounts of money flow into the exchange, it can be a negative sign, as Holders may be preparing to sell.
Since October 25, net transfer volume from and to exchanges has fluctuated between positive and negative, reaching 128K on November 10. This points to uncertainty, as the market is experiencing a a mix of buying and selling pressure.
Ethereum ‘Whales’ Are Accumulating
After weeks of decline, the number of ‘whales’ holding at least 1,000 ETH has finally started to increase again. This trend reversal began on November 7, and the number has increased steadily each day—from 5,527 on November 7 to 5,558 on November 12.
The re-accumulation of whales implies a change in sentiment, with large holders showing increased confidence in the price of ETH.
Tracking these ‘whale’ wallets is important as their activities can significantly influence market trends. When ‘whales’ begin to accumulate, it often signals the possibility of price increases, as these holders can often move the market.
Their purchases could also reduce the available supply on exchanges, creating upward pressure on Ethereum’s price.
ETH Price Prediction: Can $4,000 be attacked?
After a sharp increase, ETH price has faced some slight corrections over the past few days. The EMAs remain positive, with the short-term lines still above the long-term ones, indicating an overall upward trend.
However, the price has fallen below the shortest EMA, which implies that the current bullish momentum may be losing strength.
ETH’s closest resistance level is currently around $3,500. If this resistance is broken, ETH price could skyrocket to $3,700 — a potential gain of 17.9% and the highest since June.
Conversely, if the uptrend turns, ETH price could retest the support at $3,000. If this level fails, the next support will be around $2,800.