Ethereum has experienced a significant price surge, pushing above the $3,700 mark. This upward momentum is primarily attributed to substantial accumulation by large investors, often termed ‘whales’, and institutional buyers.
Data analytics platforms Santiment and Lookonchain indicate heightened activity from these major players. Notably, multiple new wallets have collectively acquired over 856,000 ETH, valued at nearly $3.16 billion. This impressive accumulation phase is further underscored by data showing the Ethereum Reserve holdings grew dramatically from under $3 billion to over $10.8 billion within a six-week period.
Despite this strong buying pressure, Ethereum faces significant resistance near the $3,800 to $3,900 price range. Challenges include sustained outflows from Ethereum Exchange-Traded Funds (ETFs), which totaled $129 million last week, compounded by broader macroeconomic uncertainties dampening market sentiment.
Critical technical support levels are now identified between $3,620 and $3,660. Analysts warn that a sustained drop below $3,650 could trigger cascading liquidations. Conversely, maintaining a foothold above this level could pave the way for a push towards the $3,730 to $3,780 range.
Market observers maintain a cautiously optimistic outlook regarding Ethereum’s potential to reclaim the $4,000 threshold, bolstered by bullish technical indicators. However, this potential recovery remains tempered by prevailing macroeconomic headwinds and the ongoing resistance near recent highs.