Ethereum to $2900: Bulls take advantage of declining BTC dominance

ETH

As a seasoned researcher with years of experience in the crypto market, I find myself intrigued by Ethereum’s recent bullish surge. The strong demand from whales seems to be the driving force behind this rally, reminding me of how elephants can indeed move mountains when they decide to act.

After facing difficulties in establishing a bullish position, Ethereum [ETH] began exhibiting indications of recovery – a trend mirroring the growing optimism in the broader crypto market. However, it’s worth noting one specific aspect that could have fueled the recent surge of enthusiasm among ETH supporters.

For several months now, I’ve observed a significant relationship between the dominance of Bitcoin (BTC) and the downward trend in Ether (ETH) prices. This year, this pattern has largely held true, with the BTC.D chart reaching its Year-to-Date high of 58.59%.

Currently, Ethereum (ETH) is experiencing a resurgence in its bullish trend, which coincides with Bitcoin Dominance Index (BTC.D) showing signs of decline. This indicates that the flow of liquidity might be shifting towards altcoins, and Ethereum appears to be reaping the benefits from this trend.

Over the past seven days, the market has seen a significant surge, with gains amounting to 16%. This follows a period where it was challenging for the market to break out from its recent low-range trend.

Our metrics assessment revealed that whales have been actively front-running the latest rally. Their balances have been growing since the start of September.

As of the first of September, based on historical data, it was found that a significant Ethereum holder (ETH whale) had approximately 58.12 million ETH in their wallets. More recently, by the 23rd of September, their holdings had increased to roughly 58.48 million coins.

The whale address balances therefore grew by roughly 360,000 coins in about three weeks. This was equivalent to $949.68 million worth of ETH by present market value.

Over the past several days, we’ve seen an increase in significant investments coming into our system. To illustrate, the number of coins flowing in surged from 101,740 on September 14th to a current total of 675,000 as of September 19th.

On the 22nd of September, ETH inflows for major holders were relatively low at around 96,000 ETH. However, this figure skyrocketed to over 515,000 ETH on the 23rd of September. Conversely, the largest outflows of ETH this month occurred between the 18th and 19th of September, jumping from approximately 150,340 coins to nearly 590,000 coins.

On the 23rd of September, outgoing transactions amounted to 241,000 coins. This indicates that the demand for coins was greater than the supply being offered for sale.

Can ETH sustain this new-found bullish momentum?

The recent surge in the value of Ethereum, marked by its quick increase over just a few days, might indicate a period of revival. If this is true, many investors could anticipate further growth. Yet, such prolonged growth might not be feasible.

For a moment, the quick upward trend in cryptocurrency might propel it towards the vicinity of $2,800 to $2,900. This area has shown signs of both support and resistance before. Consequently, there could be some opposition if the price attempts to move back into this same region.

Read Ethereum’s [ETH] Price Prediction 2024–2025

ETH’s RSI was at 60.03 at press time, which means it was not yet overbought.

When ETH reaches the mentioned area, it’s more probable that traders will cash out their profits, leading to increased selling activity.

2024-09-25 09:11

Can ETH sustain this new-found bullish momentum?

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