Ethereum dominates the cryptocurrency market with exceptional price strength, surged above 200% since April, establishing itself as the best major asset in the space. The rally promotes optimism among analysts, with many predicting that the highest ever high could soon be within reach for bullish investors. The combination of a robust foundation, increased institutional participation and a favorable legal environment created the perfect background for the latest surge in Ethereum.
One of the most impressive developments supporting the assembly is the historic decline in Ethereum’s supply, currently at the lowest level ever. This shows strong long-term holding behavior among investors, reducing the amount of ETH that is readily available to sell, and amplifies the possibility of rising price movements. Institutional interest is particularly pronounced, with large purchases adding sustained purchasing pressure to the market.
Some analysts are now warning of a possible “supply shock.” This is a scenario in which rapidly increasing demand could meet very limited supply and accelerate price increases even further. Once the Ethereum network foundations are strengthened and emotions reach new highs, the coming weeks could be decisive when ETH is pushed into unknown territory and determining whether to set an all-time high in this market cycle.
Ethereum whales accumulation burns speculation for facility purchase
According to Crypto’s top analyst Ted Pillows, the mystical wallet has bought a staggering $1.34 billion worth of Ethereum in the last eight days, marking one of the largest single accumulation streaks in recent months. Pillows that closely track wallet transactions suggest that the scale and consistency of these purchases refer to highly capitalized entities who have long-term bets on key institutional players or ETH.
The identity behind the wallet remains unknown, but the activity sparked widespread speculation across the crypto community. While some market watchers believe it is the result of off-the-shelf (OTC) transactions designed to minimize market impact, others suspect that they are market makers that are strategically positioned ahead of major moves. The exact motivation is unclear due to the lack of public disclosure, but the vast size of purchases emphasizes that it will increase a high level of reliability in the Ethereum outlook.
Many have seen a whale purchase explosion as a potential catalyst that can accelerate this move, especially with exchange supply and surges in institutional demand at historic lows. The coming days could prove crucial to Ethereum’s price trajectory. Bullian momentum could be rapidly strengthened when markets interpret these large influxes as the beginning of a sustained institutional accumulation phase.
ETH Price Analysis: Testing Resistance Near ATH in 2021
Ethereum (ETH) is trading at $4,283 and has recorded a 0.73% increase on its weekly charts as it approaches the main resistance area near its 2021 high. This surge marked a breakout point for the current uptrend following a sharp rally from a support level of $2,852.
The chart reflects strong bullish momentum and a well-established long-term uptrend, with ETH well ahead of 50-week SMA ($2,768), 100-week SMA ($2,759), and 200-week SMA ($2,441). Breakouts over $3,860 – currently serving as immediate support – could confirm the strength of the market and serve as a higher base for the next leg.
However, the $4,300-4,400 zone has been a historically significant inflection point. A critical nearer above this range could trigger momentum purchases and pave the way for unknown territory and potential new history highs. Conversely, if they don’t break in, ETH could retest $3,860 or even return to $3,200 if sales pressure is increased.
Volumes are prominently featured during this rally, signaling strong beliefs among buyers. With both basic and institutional interests being strengthened, ETH’s ability to overcome this resistance can determine whether the next phase of the Bull Run will accelerate in the coming weeks.
Dall-E special images, TradingView chart
