As it breaks past $4,000, Ethereum appears to be leading the top cryptocurrencies by market capitalization.
Important Points to Remember
- After breaking out of a consolidation pattern, Ethereum is back above $4,000.
- A rise in the number of large Ether transactions coincides with the bullish impulse.
- Whales may be positioning themselves for higher highs, based on network activity.
Ethereum is back in the news after surging by more than 18% in the last four days to test the psychological $4,000 level.
Ethereum has broken the $4,000 barrier.
After more than three weeks of consolidation, the second-largest cryptocurrency by market cap has resumed its uptrend.
Throughout the stagnation period, Ether made a series of higher lows, but the $3,350 resistance level prevented it from advancing further. As a result of this market behavior, an ascending triangle formed on ETH’s daily chart.
A sudden surge in buying pressure allowed Ethereum to break out of its consolidation pattern on Aug. 31 and rise by more than 18% over the next four days to a target of $4,000.
The Fibonacci retracement indicator, which measures the price movement from the high of $4,372 on May 12 to the low of $1,700 on June 22, suggests that there is still room for more buying pressure to push the asset higher. ETH could retest its all-time high with more buying at current price levels.
Whales Have Returned
The presence of whales and institutional players on the Ethereum network suggests that if buying orders continue to pile up, Ethereum could reach $5,000.
The number of large Ether transactions worth $100,000 or more is steadily increasing. On September 1, approximately 13,770 large transactions were recorded, and this on-chain metric appears to be trending upward.
Because whales have a disproportionate impact on prices due to their massive holdings, they can coordinate buying and selling activity to pump or dump tokens. As a result, over the last few years, whenever the number of large Ether transactions begins to increase, prices tend to follow.
Further gains can be expected as long as Ethereum maintains its momentum and prices remain above $3,800.