Key Takeaways
What points to an upcoming Ethereum rally?
If ETH holds above the $4,490 breakout level, it could rally 7.5% toward $4,865, supported by whale accumulation and strong trading volume.
What on-chain data supports this bullish outlook?
$244 million worth of ETH exited exchanges in 48 hours, indicating accumulation by whales and traders betting on long-term upside.
Ethereum [ETH] saw an impressive 11% price uptick last week, but the asset now appears to be correcting.
Despite price falling from $4,760 to the $4,500 level, crypto whales have shown strong interest in the asset, as they appeared to be accumulating.
Ethereum whales accumulate $141 million
Data from crypto transaction trackers Onchain Lens and Lookonchain reveal that Ethereum whales have added 30,432 ETH worth $141.66 million over the past 24 hours.
These substantial purchases show whales’ strong interest in the asset and hint at a strong upside potential.
During the same period, global perps volume distribution reveals that altcoins, including ETH and other tokens, dominated overall crypto trading volume by 85.56%.
ETH led with $38.16 billion in trading volume, overtaking BTC at $21.4 billion, followed by SOL and DOGE, which recorded $17.24 billion and $10.16 billion respectively, as reported by Laevitas.
Source: X/laevitas1
This surge in altcoin trading volume, especially in ETH, shows strong bullish confidence and seems to signal a more optimistic outlook compared to Bitcoin.
At press time, Ethereum stands at $4,520, down 3.15% over the past 24 hours. However, trader and investor participation has skyrocketed during the same period, resulting in a 22% jump in trading volume.
Ethereum price action and technical analysis
Looking at the price dip over the past 24 hours, it appears that the asset might be retesting a key breakout level at $4,500.
According to AMBCrypto’s technical analysis, ETH is still in an uptrend, as revealed by its Supertrend indicator.
Based on the current price action, this uptrend can only be sustained if ETH holds above the $4,490 level.
Source: TradingView
If this happens, there is a strong possibility that the asset could see a quick 7.5% rally toward $4,865.
However, this bullish outlook will only be validated if ETH holds above $4,490; otherwise, it will be invalidated.
Despite the price decline, ETH’s Average Direction Index (ADX) value reaches 28.75, above the threshold value of 25, which suggests that the ongoing trend is gaining strength and could continue in the near term.
On-chain flashes bullish sentiment
Adding to the bullish strength, both investors and traders have shown strong interest in the asset, as revealed by on-chain analytics tool CoinGlass.
Data from spot inflow/outflow reveals that over $244 million worth of ETH has left exchanges in the past 48 hours. This substantial outflow suggests ongoing accumulation and may signal an end to the correction soon.
Source: CoinGlass
Meanwhile, data from Binance shows the ETHUSDT Long/Short ratio at 1.50, suggesting strong trader interest.
At press time, 60.08% of Binance traders are betting on long positions, while 39.92% are on short positions.
Source: CoinGlass