Key Points
- Ethereum could potentially reach $2,900 if it stays above the $2,570 level.
- Ethereum’s Long/Short Ratio stands at 2.023, suggesting a highly bullish market sentiment.
Ethereum, the second-largest cryptocurrency by market cap, is attracting the attention of whales. These big players are currently buying up Ethereum due to its positive on-chain metrics.
Whales Buying Ethereum
On-chain analytics firm, TheDataNerd, reported on the 24th of September that a whale wallet address purchased a substantial 50,020 Ethereum, worth $132 million, from Kraken. This considerable acquisition happened as Ethereum broke out of its two-day consolidation following the $2,570 level breakout.
While some whales view the current price level as an opportunity and are heavily accumulating, others are selling their holdings in anticipation of a price drop in the coming days.
Key Levels for Ethereum
Despite trading below the 200 Exponential Moving Average (EMA) on a daily timeframe, Ethereum appears bullish according to technical analysis. The 200 EMA is a technical indicator used to identify an asset’s trend.
The recent breakout of the significant resistance level of $2,570 and the minor consolidation suggest a potential upside rally. If Ethereum can remain above the resistance level, it could potentially rise to the $2,900 level or higher if market sentiment stays positive.
Supporting this positive outlook are Ethereum’s bullish on-chain metrics. According to Coinglass, Ethereum’s Long/Short Ratio was 2.023, indicating extreme bullish market sentiment among traders. Furthermore, its Futures Open Interest rose by 3.2% in the last 24 hours.
Traders and investors often use the combination of rising Futures Open Interest and a Long/Short Ratio above 1 to build long positions. As of press time, 66.93% of top traders held long positions, while 33.07% held short positions. This data suggests that bulls are currently dominating the asset.
At press time, Ethereum is trading around the $2,640 level and has remained stable over the past 24 hours. During this time, its trading volume fell by 7%, indicating less trader participation.