Ethereum’s (ETH) price is encountering a bullish scenario that could propel it to a multi-month high, which is being aided by whales.
However, for this to happen, ETH would first need to secure a key price level as support.
Ethereum Investors Push for Profit
Ethereum’s price is witnessing the impact of the bullishness of whales. These large holders have sharply accumulated for the past week, enabling ETH to break out of its descending wedge.
The addresses holding between 100,000 and 1 million ETH have added a little over 390,000 ETH, a supply worth $1.26 billion, bumping the whales’ holdings to 19.94 million ETH. This buying spree occurred over the past week.
In the past, these investors exhibited a tendency to change the direction of Ethereum’s price through their actions. Their accumulation led to price increases and selling, causing declines and making them a key cohort.
Ethereum Whale Holdings. Source: Santiment
However, this does not make retail investors any less of an impact-bearing cohort. Their holdings of millions of ETH drive recoveries and dips. At the moment, it is the former because the altcoin is on the verge of making 5.82 million ETH profitable.
According to the Global In/Out of the Money (GIOM) indicator, the supply was bought between $3,000 and $3,163. This $18.65 billion worth of ETH will keep investors and whales optimistic. Plus, since the likely target for Ethereum’s price rise is 30%, a rise to $3,163 will occur soon.
Ethereum GIOM. Source: IntoTheBlock
Thus, as investors remain optimistic and participate in the network, the price will also benefit.
ETH Price Prediction: Will the Breakout Result in a Rally?
Ethereum’s price, trading at $3,099 at the time of writing, is above the key support of 23.6% Fibonacci Retracement at $3,031. This was enabled by the altcoin breaking out of the descending wedge it has been in since early March.
A descending wedge is a bullish reversal pattern characterized by converging trendlines sloping downward. Once the price breaks through the upper trendline, it typically indicates a potential breakout to the upside.
Based on this pattern, the likely target for ETH is $3,873, which could lead to a 30% rally. However, the more practical and possible target is $3,336, which coincides with the 38.2% Fib line.
Ethereum Price Analysis. Source: TradingView
However, losing the 23.6% Fib support could invalidate the bullish thesis. This is because this Fib Retracement is also known as the bear market support floor, and a drawdown below it would intensify the bearishness. Consequently, Ethereum’s price would fall below $3,000 towards $2,539.