Ethereum Surges Above $2K Fueled by Increased Whale Activity

As Ethereum continues to lead the rally, could the momentum potentially propel ETH to a new all time high?

The broader cryptocurrency market cap, valued at $2.94 trillion entering May, soared to $3.3 trillion on May 10th, with Bitcoin (BTC) hitting $104,000 and Ethereum (ETH) surging over 20%.

As Ethereum continues to lead the rally, could the momentum potentially propel ETH to a new all-time high?

Ethereum Surges Above $2.3K Fueled by Increased Whale Activity

Jumping from $1,828 on May 3rd to $2,394 seven days later, ETH is showing strong signs of a major breakout, with technical and fundamental indicators fueling the bullish sentiment.

The Ethereum network has seen several recent upgrades, such as the Pectra upgrade, which improves overall efficiency and security. Meanwhile, a rapidly increasing inflow into staking pools and ongoing token burns are tightening ETH’s supply and supporting price stability.

Amid the positive developments, whale activity is also increasing, with Lookonchain reporting that a wallet, likely tied to President Trump’s World Liberty, bought $3.5 million worth of ETH on May 9th.

Since May 8th, ETH also saw a $297 million investment from Abraxas Capital, as the institution withdrew $92 million worth of ETH from Binance and Kraken the day before it pushed past $2,300.

Abraxas Capital invested $297 million in ETH.

Yesterday, Abraxas Capital withdrew $92 million worth of ETH from Binance and Kraken. Today, it invested $297 million in ETH as the price surged past $2,300. https://t.co/H9zK0E2c7v

— Lookonchain (@lookonchain) May 10, 2024

Moreover, a whale who previously sold ETH at a loss started accumulating the token again, purchasing 9,023 ETH, valued at the time at $20.55 million on May 10th.

As whales and institutions show increasing interest in ETH, many experts are confident the leading altcoin is on its way to a new ATH this year, with one expert expecting it to reach $7,000.

If this happens and $ETH goes into pump only mode to $7k+, that would be the most hated rally ever in crypto history.

However, the expert believes a slight pullback will follow the sudden rally, expecting ETH to test its support at the $2,000 level before surging past $3,000.

ETH’s current Relative Strength Index (RSI) of 81.23 places the token in overbought territory, meaning the potential pullback can be seen as a healthy correction that would create room for additional growth.

ETH Could See Major Breakout Target at $5,800

While many analysts are expecting a pullback from the recent rally, some technical indicators are hinting at a continuation of the uptrend.

According to technical analyst Stasher, ETH’s major breakout target is in the $5,800 range, which he identifies as the final leg of ETH’s harmonic chart pattern.

"From the MACD to the RSI, all indicators point to a continuation of the uptrend. Pay attention to the Fibonacci levels for potential support and resistance."

The crypto community is buzzing with anticipation as the possibility of a new all-time high for Ethereum looms large. As the leading altcoin shows remarkable strength and technical indicators align, investors are eagerly speculating on the potential price levels that could be achieved in the coming months.

With BTC already hitting $104,000 and the broader crypto market cap exceeding $3 trillion, the stage is set for a historic run in the crypto markets.