Ethereum
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2,529, the largest altcoin, has breached a prolonged consolidation phase with a strong breakout, surpassing the market capitalization of $327 billion, temporarily overtaking one of America’s largest banks, Bank of America. Technical indicators and on-chain data suggest Ethereum is on the brink of one of its strongest monthly closures. These signals have led to expectations of a potential rally exceeding 50% in the near future.
Technical Indicators Signal a Strong Upswing in Ethereum
Ethereum has finally broken out of a long-standing bullish formation upwards. Approaching the weekly close, the 200-day moving average is being tested, and any movement above this level could alter the trend’s trajectory. Currently, the price is testing the neckline of a v-dip formation, a frequently observed pattern in technical analysis. A weekly close above this level could trigger a strong wave of buying.
In contrast, the weekly RSI continues its upward trend. The MACD indicator has crossed bullishly while the CMF has recovered from -0.11, reaching the zero line. However, the DMI indicator still gives uncertain signals. Despite this, the overall outlook suggests a strong bullish scenario. The price breaking above a multi-year ascending trend line could initiate a new price discovery phase.
Whale Purchases and Open Positions Increase
The rise in Ethereum is not only driven by technical analysis but also by on-chain whale activities. Notably, following the Pectra update, a strong jump was observed in the ETH/BTC pair, restoring market confidence. This jump is reminiscent of the 2020 uptrend and subsequent 2021 bull season, leading some investors to believe a similar scenario might unfold.
Famous whale investor James Wynn further strengthened these expectations by opening a $60.4 million long position on Ethereum with 25x leverage. Wynn had previously achieved significant gains with positions in Bitcoin
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0.000039. This move indicates the confidence of major players in Ethereum. Additionally, the total size of open futures contracts surpassed $33 billion, reaching an all-time high, which suggests fresh liquidity entering the market and new buying opportunities arising.
Currently, Ethereum is rising on strong support emerging from the convergence of technical indicators, on-chain data, and whale movements. This momentum suggests that in the coming weeks, the price could reach much higher levels.
