No sooner than Bitcoin barged above $107K, the Ethereum price managed to rise above $4000, which seems to have flipped the market sentiments of the traders. With the sluggish price action, a portion of the market participants had turned uncertain about the next price action. However, the latest rise in the prices revives the hopes for a new ATH, which may not be before the end of 2024 but certainly in early 2025
Ethereum is known to closely follow Bitcoin, as it did during the 2021 bull or before. The top two tokens surged with the same intensity, dominating a major portion of the volume and marking new ATH side-by-side. However, the current trade setup and price action suggest the second-largest token may have become independent.
One of the major reasons is said to be the spot ETH ETF inflows, which accelerated after the U.S. election results. However, the whales seem to have been preparing for the rise much before, as they constantly increased their positions, which have reached levels not seen since 2017.
The data from Santiment shows a rise in wallets that at least hold 100K ETH, which holds 57.35% of the whole Ethereum supply. To be precise, there are 104 whale wallets, holding at least 100K Ethereum. On the other hand, the wallets with ETH holding between 100 and 100K and below 100 were constantly declining and have reached the lowest point at 33.46% & 9.19%, respectively. This flashes a strong bullish signal for the long term, where the whales hold the highest portion of the supply.
What’s Next for the ETH Price Rally? When Can We Expect a New ATH?
The historic ETH price rally suggests the token is at the stage where BTC was during the start of the quarter. The token broke the consolidation and launched a nearly 60% rise, marking a new ATH very close to $108K. Therefore, if the ETH price replicates a similar breakout, the ATH could be much higher than $5000.
The weekly chart of ETH suggests the price has reached the crucial resistance and a rise from these levels may help the token enter the final resistance zone before the ATH. The Ichimoku cloud has turned bullish with the conversion & base line undergoing a bullish crossover, validating the upcoming rise. As per data from Intotheblock, a total of 7.2 million ETH were bought just below $4000, which is expected to stabilize the levels above the range.
With this, the Ethereum (ETH) price appears to be poised to launch a massive bullish attack, aiming to form new highs probably before the end of 2024.
