Whales Are Loading Up on Ethereum (ETH) Ahead of a Potential Breakout

Ethereum's recent price movements have caught the attention of the crypto market, not just for their strength but for what they reveal beneath the surface.

Major holders of Ethereum (ETH) known as whales have been steadily increasing their positions over the past several weeks, highlighting their strong conviction in the asset.

As reported by Crypto Rover, large Ethereum wallets went on a spree, adding over 1.4 million ETH to their holdings.

As reported by Crypto Rover, large Ethereum wallets went on a spree, adding over 1.4 million ETH to their holdings.

Mid-April saw their collective stash stand at 15.8 million ETH. However, by mid-May, these whales had amassed more than 17.2 million ETH.

This period of accumulation closely aligns with Ethereum’s price rally, which saw the token rise from around $1,600 to over $3,100. During this surge, Ethereum managed to break major resistance levels.

One such level was at $2,200, which had stalled the token’s recovery from the 2022 bear market. Afterward, at $2,800, another buildup in selling pressure occurred, threatening to return Ethereum to the lower zone.

Nevertheless, buyers pushed through both hurdles, setting the stage for further gains.

Chart: Crypto Rover

These whales began buying before Ethereum’s price spiked, which may be linked to their ability to move the market. Their entry at relatively low price levels could be seen as an attempt to influence the token’s direction.

Moreover, the fact that they managed to maintain a consistent buying presence throughout Ethereum’s steep ascent is noteworthy. This suggests that they may possess inside knowledge or, at the very least, a deep belief in Ethereum’s long-term value.

Technical Indicator: Golden Cross

Another analyst, Ted Pillows, focused on a technical pattern that could keep Ethereum rising. In a post on May 11, the analyst noted the 50-period moving average cross above the 200-period moving average on the 12-hour chart.

This crossover, known as a golden cross, is usually associated with sustained upward momentum and renewed interest from investors.

“Golden Cross confirmed. $3,000 next,” the analyst stated.

Chart: Ted Pillows via Twitter

The crossover also indicates increased buying pressure, further strengthening the case for Ethereum’s uptrend. However, to maintain this momentum, Pillows said that Ethereum must stay above $2,200.

Slipping below this level could weaken the bullish case and increase the chances of a steeper correction.

Next Levels of Resistance and Support

Examining the broader market trends, another analyst, Ali Martinez, observed that the next major resistance for Ethereum is at $3,100.

This zone played a role in limiting gains earlier in 2024, and if breached, could open the door for a steeper rally.

“If the bulls can keep the price above the $2,233 support, then we might see a continuation of the rally towards the $3,000 zone,” Martinez stated.

However, if sellers manage to sink the token below this level, it could pave the way for a retest of the $1,900 zone. At the time of writing, ETH is trading at $2,478.66.