The price of Ethereum (ETH) has risen significantly, gaining 20% over the past week. Part of this rally was driven by significant ETH outflows from exchanges, indicating growing confidence among holders. Whale accumulation has also increased, indicating increased bullish sentiment.
However, following recent minor corrections, ETH is now at a key point, testing support and resistance levels to determine its next move.
Net ETH transfer volume reached 128,000 on November 10
ETH has seen a strong rally, rising 20.10% over the past 7 days. On October 25, more than 361,000 ETH left exchanges, a significant outflow indicating growing confidence among holders ahead of the current rally.
Such a large move usually suggests that investors are moving their assets into personal wallets, hinting that they may be planning to hold them rather than sell.
When a lot of coins leave exchanges, this is generally bullish as it indicates that users are less likely to sell. Conversely, when large volumes of coins arrive on exchanges, this can be a negative factor as holders may be preparing to sell.
Since October 25, net transfers to and from exchanges have fluctuated between positive and negative, reaching 128,000 on November 10. This indicates uncertainty as the market experiences a combination of buying and selling pressure.
Ethereum whales are piling up again
After several weeks of decline, the number of whales holding at least 1,000 ETH has finally started to rise again. The trend reversal began on November 7, and their number consistently increased day by day – from 5527 on November 7 to 5558 on November 12.
Renewed accumulation among whales suggests a change in sentiment, with large holders showing growing confidence in the ETH price.
Tracking these whale wallets is critical as their activities can significantly influence market trends. When whales begin to accumulate, it often signals a potential rise in prices as these holders tend to move markets.
Buying them could also reduce the available supply on exchanges, putting even more upward pressure on the price of Ethereum.
ETH price forecast: is it possible to rise to $4000?
After a strong rise, the price of ETH has undergone a slight correction over the past few days. EMA lines remain bullish, with short-term lines still above long-term lines, indicating an overall uptrend.
However, the price fell below the shortest EMA line, suggesting that the current uptrend may be losing some momentum.
ETH’s nearest resistance level is currently around $3,500. If this resistance is broken, ETH’s price could potentially rise to $3,700 – a possible 17.9% increase and the highest level since June.
On the other hand, if the uptrend reverses, ETH price could retest the support at $3,000. If this fails, the next support level will be around $2,800.
