Ethereum has witnessed a surge in purchases by major investors, totalling over $7.2 million. While the price for ETH has risen to $1,862.16, analysts warn of potential market dips as they eye a target of $2,200. The current market sentiment appears neutral, with increased activity in Ethereum futures.
In a significant market movement, three prominent crypto whales have purchased a massive amount of Ethereum (ETH), with transactions totaling over $7.2 million. This buying spree, tracked by Lookonchain, saw a total of 5,362 ETH acquired in just a few hours. One of the whales, identified as ‘0xDdb4’, took out a sizeable loan of $3.44 million USDC from lending platform Aave, immediately converting the funds into 1,856 ETH.
Meanwhile, another user with the wallet address ‘0xf84d’ borrowed $1.64 million USDC to further supplement their funds and invested a total of $2.34 million to secure 1,259 ETH. Not to be outdone, a newly created wallet named ‘0x69D0’ withdrew 2,250 ETH—valued at roughly $4.12 million—directly from the Binance exchange.
Following these significant purchases, Ethereum’s price surged. As of Thursday, May 1, the price of ETH stood at $1,862.16, marking over a 5% rise from a recent low of $1,767.00, based on CoinMarketCap data. The overall market cap for Ethereum reached approximately $224.82 billion, with a trading volume reported at $15.65 billion over the previous day. This rally follows ETH’s rebound off a significant support level at $1,500, a movement that typically invites more investor action.
On a daily chart analysis, ETH demonstrated a clear reversal pattern near the $1,500 mark, pushing towards an “order block” situated around $1,800, a range anticipated to attract trading interest. Analysts are eyeing this next level closely; if ETH remains above $1,800, the price target could potentially reach $2,200, aligning with the 100-day moving average.
However, caution is urged as the 4-hour chart displays a consolidation pattern, hinting at a bearish flag formation. This pattern could suggest an impending dip in the market, yet should ETH maintain its position, a significant rally may become possible.
The Relative Strength Index (RSI) is currently sitting at 53, indicating a neutral stance within the market as both buyers and sellers are poised for their next move. Furthermore, open interest in Ethereum futures is on the rise, nearing $23 billion according to Coinglass, suggesting that many derivatives traders are betting on ETH’s price action in the near future. Yet, it’s important to note that high open interest often precedes sharp market corrections, leaving investors with some anxiety.
Stay tuned for Ethereum Price Predictions: Could ETH hit $2,500 by May?
