The long anticipated Bitcoin halving is finally completed, after Ethereum (ETH) saw slow growth amid the recent market crash. This was partly fueled by the fading expectation of SEC approving Ethereum ETFs in may. ETH experienced losses by 15% slightly over a week ago, losing ground to Bitcoin. Although there was no immediate reaction to the halving event by top cryptocurrencies including Bitcoin itself, Ethereum (ETH) has since seen an uptick of approximately 0.8% in its market value. As investors and enthusiasts closely monitor the next move of Bitcoin and altcoins, let’s unravel why Ethereum price is rising.

Current Market Performance of Ethereum Price

Over the past day, the price of Ethereum  has risen by 1.39% to $3,214.11. This increase maintains a favorable pattern for the week, increasing by 2.16%, but exhibits an 8.40% drop over the month. This shows potential volatility and market correction in the long-term

Ethereum holds the second position in market capitalization, according to CoinMarketCap, amounting to $385.8 billion. The token has experienced a slight increase of approximately 1.8% in its trading activity, by recording a trading volume of $10.16 billion over the past 24 hours.

ETH has been trading between a low of $3,119.55 to a high of $3,210.30, indicating moderate volatility within the day. However, when compared to its all-time high of $4,891.70 it achieved on November 16, 2021, the token has recorded losses of 34.69%, indicating a notable pullback from its highest point.

Whale Activity

The recent surge in Ethereum’s price is underscored by significant on-chain transactions, particularly one involving a substantial withdrawal of 10,119 ETH from Binance, indicative of a notable Ethereum whale activity. According to Lookonchain investor has been progressively accumulating Ethereum, amassing a total of 127,388 ETH since April 8, totaling around $405.19 million.

Notably, the average purchase price of this whale, standing at $3,172 per ETH, signals a bullish long-term outlook on Ethereum’s potential within the market.

Adding to the rumors is the participation of Justin Sun, the creator of Tron (TRX), a well-known figure in the crypto world recognized for his financial ventures and public remarks. Claims imply that Sun has been buying Ethereum, with evidence suggesting that a wallet reportedly linked to him has been accumulating a substantial quantity of ETH since the start of April.

This wallet’s activity aligns with a pattern observed from March 31, wherein large sums of stablecoins were moved from Binance to Ethereum, followed by substantial purchases of ETH from both Binance and decentralized exchanges (DEXs).

ETH transaction linked to Justin Sun (Source: Lookonchain)

The similarities in transaction behavior between this wallet and another previously linked to Justin Sun, which acquired Ethereum in February, further bolster the speculation that Sun may indeed be behind these transactions.

In total, the suspected wallets attributed to Sun have reportedly acquired 295,757 ETH, valued at approximately $891 million, since February 12, at an average price of $3,014 per ETH.
These transactions, coupled with the ongoing interest and investments from notable figures like Justin Sun, contribute to the upward pressure on Ethereum’s price.

Currently, Ethereum is still being traded at $3,206.30, indicating the current market trends and investor feelings towards the digital currency. The participation of powerful people like Sun illustrates the changing interactions within the Ethereum community, emphasizing its importance and possibility for more expansion.

Strong Support Levels and Bullish Technical Patterns

Various crucial factors can be credited for the recent increase in Ethereum’s price. During the pre-halving consolidation phase in the wider cryptocurrency market, Ethereum successfully held its position above the important $2,875 level. This level aligned with the 38.2% Fibonacci retracement level, giving buyers a strong base to take charge of the market direction.

Furthermore, the strong pullback seen in Bitcoin’s halving phase helped boost Ethereum’s price, driving it to peak at $3,198. Upon further analysis of the 4-hour chart, it is evident that a double bottom pattern has emerged, which is a common technical formation seen at the end of a downtrend, indicating the possibility of a substantial increase in price. This trend, along with the strong market momentum, boosted buyers’ confidence.

With Ethereum’s price showing positive momentum, there is hope it will exceed the key resistance level of $3,300, boosting buyer confidence and possibly extending the recovery process. If this breakout occurs, Ethereum may reach higher price levels, with forecasts suggesting a potential rise to $3,730, then $4,100.

Conclusion

As Ethereum continues to defy market pressures, its resilience above key support levels and the formation of bullish technical patterns signal a potential uptrend. With buyers eyeing critical resistance levels, the stage is set for further price appreciation in the near term.

The post Ethereum Price: 2 Reasons Why ETH Price is Rising ? appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am