Ethereum’s recent slump to $2,387 on Friday was short-lived, driven largely by speculation surrounding an investigation into Tether, the world’s largest stablecoin issuer. This capitulation led to a staggering $390 million in liquidated positions, with $62.21 million attributed to Ethereum traders alone. However, amid this chaos, signs of a potential recovery are emerging from on-chain activity, igniting speculation of a bullish rebound.
Whale Activities Reach New Heights
Recent data from Santiment indicates a significant surge in whale activities on the Ethereum network, reaching a six-week high. As traders sought to capitalize on the dip, 6,428 new wallets were created on the platform, marking the largest single-day increase since September 5. This spike reflects the eagerness of large holders—those with over $100,000 worth of Ethereum—to accumulate the asset at a discounted price.
While Santiment cautioned that this accumulation may not lead to immediate price changes, it underscores the confidence whales have in Ethereum, even amid its recent struggles. The persistent interest from these large investors serves as a reassuring sign for the broader Ethereum community, suggesting a strong foundation for future growth.
Last Chance to Buy?
In the midst of this turbulent market, TradingView analyst Basictradingtv has labeled the current dip as potentially the “last buy opportunity” for Ethereum. According to their analysis, despite the altcoin king correcting nearly 50% over the past few months, it has managed to maintain a bullish market structure. Basictradingtv’s chart analysis indicates that Ethereum is still holding onto its critical support levels, presenting a promising outlook for those looking to enter or expand their positions.
The analyst anticipates a potential surge of 60% to around $4,000 if Ethereum can successfully retest its earlier bullish breakout. However, they also warn that a decline to $2,000 could invalidate this bullish thesis, marking that price zone as critical to watch in the near term.
Broader Market Sentiment
Analysts across the board seem to share a similar optimistic outlook for Ethereum. For instance, Ali Martinez has predicted that Ethereum could skyrocket to $6,000, citing the possibility of a bounce back to the upper boundary of its ascending triangle formation.
Currently trading at $2,464, Ethereum is down 6.67% over the past week, yet the underlying sentiment suggests that traders and investors are cautiously optimistic. As Ethereum navigates through this turbulent phase, the focus shifts to how it will respond in the coming weeks, especially with whale activities indicating a robust accumulation effort.
Also Read: Ethereum Foundation Moves $3M In ETH To Bitstamp – $124M In Holdings Under Scrutiny
In conclusion, while Ethereum’s recent dip reflects broader market uncertainties, the increase in whale activity and expert predictions of a potential rebound provide a glimmer of hope. For investors, this could represent a strategic moment to engage with Ethereum, positioning themselves ahead of what could be a significant price rally. As always, however, caution and thorough analysis remain essential in this volatile landscape.
