- The Ethereum price gave a bullish breakout from the formation of a falling wedge pattern.
- With today’s price jump over, the derivative market witnessed a short liquidation of $140.44 million, according to Coinglass data.
- Santiment data shows whales and sharks have collected 934,240 ETH across three weeks.
ETH, the native cryptocurrency of the Ethereum blockchain, took a notable leap of over 8% on Tuesday to trade at $3,383. The upswing followed broader market recovery as investors anticipated another quarter-point cut from the U.S. Federal Reserve. In addition, the Ethereum price recovery gained additional traction as large investors showcased their interest in accumulating ETH during the recent dip.
Institutional Wallets Expand ETH Holdings Above 400K
In the past three weeks, the Ethereum price showed a bullish rebound from $2,621 to its current trading value of $3,383, registering a 29% growth. This upswing showed two higher lows in the daily time frame chart, indicating a positive shift in market sentiment.
This recovery momentum gained traction amid investors’ optimism towards a 25 bps rate cut from the Fed, whose odds currently waver near 90%. In addition, the recently launched Fusaka upgrade and large investors’ accumulation are contributing to this growth.
Ethereum saw an 8.5% increase in today’s trading session, which is known as a notable increase in a fluctuating market. Large-scale investors, sometimes known as whales and sharks in the crypto world, have been gradually accumulating their holdings. Over the past three weeks, the following entities have collected about 934,240 units of ETH, or about $ 3.15 billion in total value.
This trend of buying is widely in contrast to how smaller participants in the market behave. In the last week, these entities have offloaded approximately 1,041 ETH, projecting retail capitulation. In just the last week, individual retail traders have offloaded some 1,041 ETH, signaling a divergence in strategy between the big players and the everyday users.
SantimentMeanwhile, institutional ETH reserves have increased steadily even during times of downward pressure on prices. During November, these treasuries grew by over 309,000 ETH as the asset experienced softer valuations. The trend has continued into the beginning of December, with additions of more than 100,000 ETH already logged.
Such movements emphasize changing dynamics in the Ethereum world, where prominent accumulators seem to take advantage of temporary dips.
Ethereum Price Exit 60-day Correction Trend
With today’s price jump, the Ethereum price gave a decisive break from the key resistance level of a falling wedge pattern. Over the past two months, this chart setup carried a steady correction trend, evidenced by the series of lower lows and highs formation, resonating within two converging trendlines.
Falling wedge patterns are common at the end of a downtrend or correction as the converging trendline accentuates weakening bearish momentum.
The recent price jump indicates an escape from this bearish trend while buyers gain suitable support to drive a stable recovery. The coin price also managed to reclaim the 20 and 50-day exponential moving averages, accentuating a bullish shift in market sentiment.
A sharp spike in the momentum indicator RSI (Relative Strength Index) averages, with strong buying pressure to support further price recovery.
With sustained buying, the Ethereum price could jump another 9.8% to challenge $3,655 resistance, followed by a lead towards $4,245.
ETH/USDT -1d ChartOn the contrary, if the coin price fails to sustain this breakout and re-enters the wedge pattern range, the bullish thesis will be invalidated.
Source: https://www.cryptonewsz.com/ethereum-price-60-day-whales-buy-3-15b/
