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Ethereum nears $3,200 with whale moves under close watch

Ethereum nears $3,200 with whale moves under close watch

GrafaGrafa2024/11/12 11:00
By:Isaac Francis

Ethereum’s (CRYPTO:ETH) recent surge to the $3,200 resistance level has drawn attention to the activities of Ethereum whales and long-term holders (LTHs).

Following months of consolidation at around $2,700, ETH’s rally reflects the broader bullish momentum in the cryptocurrency market, spurred by Bitcoin's upward trend.

The behavior of key market participants, including whales and LTHs, will be pivotal in determining whether this momentum can push ETH past the $3,200 mark or lead to a potential setback.

The 14-day Relative Strength Index (RSI) for Ethereum has reached approximately 76, indicating overbought conditions that may signal either further bullish strength or a possible pullback as traders look to lock in profits.

While an overbought RSI typically suggests potential price consolidation, it can also point to strong upward momentum if sustained.

On-Balance Volume (OBV) has shown a sharp upward trend, hinting at strong volume accumulation, which could be tied to increased whale activity.

This significant buying interest is crucial for ETH’s ability to breach the current resistance and maintain higher price levels.

According to Santiment data, whale transaction volumes have risen, signaling confidence among large investors that could support continued price growth.

However, Glassnode’s data reveals a nuanced picture regarding LTHs.

During September and October, Ethereum’s liveliness metric, which reflects the ratio of active supply to dormant supply, was on the decline, suggesting accumulation by long-term holders.

This accumulation has provided stability, absorbing supply and reducing the risk of sharp price declines.

Yet, the recent increase in liveliness as ETH approaches $3,200 implies that some LTHs are beginning to take profits.

This shift could introduce additional supply into the market, potentially capping the rally and affecting price momentum.

At the time of reporting, the Ethereum price was $3,346.09.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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