After impressive performance over the past two months, Ethereum (ETH) price has reached a critical resistance level above $3,953, which could either delay or confirm further bullish sentiment. The largest altcoin, with a fully diluted valuation of around $476 billion and average daily trading volume of around $30 billion, successfully retested its bullish breakout after a multi-year downward logarithmic trend.
However, the price of Ethereum could consolidate in the near future to attract more buyers, especially since the price of Bitcoin (BTC) stole the show, rising above $105K earlier today. Consequently, the much-hyped altseason could take much longer to materialize as large-cap altcoins take time to attract new liquidity amid slow cash flow from Bitcoin.
Ethereum whale on the move
According to data analysis provided by Glassnode, the number of Ethereum whale addresses with a balance of more than 10 thousand ETH has continued to grow exponentially recently. The noticeable increase in the number of Ethereum whales coincides with the continued decline in the supply of Ethereum on centralized exchanges; Over the past seven days, more than 95 thousand units of ETH have been withdrawn from CEX exchanges.
Notably, US spot ETFs have recorded over $2 billion in net cash inflows over the past three weeks. US spot ETFs, led by BlackRockms ETHA, recorded their highest weekly cash inflows of about $854 million last week.
What’s next?
With increasing demand for Ether from institutional investors, especially as a measure to diversify their respective crypto portfolios, the bullish outlook has increased significantly. From a technical analysis perspective, ETH price is heading towards $5,250 in the near future, which coincides with the daily Fibonacci extension.
However, Ether’s parabolic rally will be confirmed after the weekly relative strength index (RSI) rises again above the 70 percent level so far this year.
