Ethereum Price Could Hit $12K as Whales Signal Renewed Confidence

Ethereum is experiencing increased market activity, driving speculation about a price surge to $12,000. Whales are returning, with consistent accumulation suggesting confidence in the asset’s long-term outlook. Analysts cite technical patterns and macroeconomic conditions as reasons for potential bullish movement. The chart analysis hints at possible price breakouts, amid growing institutional interest and ongoing upgrades.

Ethereum is back in the limelight with some big movements in the market. Recent activity suggests that the cryptocurrency could reach up to $12,000, mainly due to strong signs from both technical indicators and whale investors showing renewed confidence. Whale accumulation and consistent buying patterns from large holders paint a potentially bullish picture for Ethereum’s future.

Lookonchain’s data shines a light on a notable Ethereum whale who made a significant return to the market after previously selling at around $2,740, which resulted in a hefty $11 million loss. This same wallet, about a month ago, scooped up 2,713 ETH when prices dipped to about $1,502, spending around $4.07 million. The whale has now made another big purchase of 9,023 ETH for approximately $20.55 million at a price of $2,277, reflecting their growing faith in Ethereum’s medium to long-term potential.

Such buying, especially at higher price levels after prior losses, often shows that this investor is banking on a larger upward trend. Accumulating during price increases tends to bring in more market participants, which could reinforce support levels. Market analysts frequently see these kinds of substantial purchases from seasoned traders as a good sign of future sentiment, and in this case, it signals increasing positivity around Ethereum’s price trajectory.

On-chain metrics tell a similar story. CryptoQuant has reported a spike in Ethereum inflows into accumulation addresses, which are often associated with long-term holders and institutional investors. This latest surge of activity is reportedly a record since tracking began back in 2017. While Ethereum has been solidly consolidating after earlier corrections, the asset is seeing significant accumulation activity. This can suggest that large players are choosing to position themselves early rather than waiting for big rallies.

Historically, similar patterns of accumulation have occurred both in 2020 and mid-2022, times that sparked significant multi-month price increases. Analysts are drawing parallels with current trends that, along with Ethereum’s stable pricing, hint at a possible upcoming broader uptrend. Overall, this consistent accumulation behaviour looks promising for long-term investors.

Market analyst Ted Pillows has a bold prediction, speculating that Ethereum could hit $12,000 by Q4 2025. He highlights a mix of technical strengths and favourable macroeconomic conditions as driving forces. Notably, ETH’s recent breakout from a multi-year symmetrical triangle is signalling this possible bullish run. Since 2017, Ethereum has been trading well within a long-term ascending channel, suggesting left-room for continued gains.

Pillows also attributes Ethereum’s expected expansion to its dominance in sectors like DeFi, stablecoins, and tokenized assets. Such leadership positions enhance its long-term prospects. On the institutional side, the anticipated approval of spot ETH ETFs is expected to stir fresh demand. Additionally, Ethereum’s recent Pectra upgrade has introduced aggressive token burns which can help reduce the total supply.

Moreover, he foresees a shift in policy from the Federal Reserve and other global central banks, potentially creating a new “risk-on” climate—likely a boost for crypto. Pillows interprets Ethereum’s recent upward movement not as a height but as the launchpad of a longer positive trend.

Peter L. Brandt, a veteran trader recognised for his conservative approach, expressed his views on the current ETH chart. Generally positive about Ethereum, he still sees the ongoing price movement as somewhat congested, hinting at a possible breakout soon. The chart exhibits narrowing price bands, which classically hint at forthcoming dramatic price methods.

Ethereum’s price tends to hover near key resistance levels, and with rising on-chain deposits alongside the return of major investors to the scene, there may be an opportunity for significant upward movements. Volume and market sentiment appear to be shifting toward riskier assets, and with technical indicators strengthening, a breakthrough could lead to a surge toward that $12,000 mark. But, there’s still plenty of work to do.

As always, this article is for informational purposes only and shouldn’t be taken as investment advice. Cryptocurrency trading involves significant financial risk, and doing your own research is crucial before diving into investments.

Olivia Stephanie brings a heartfelt passion for fintech and economics, exploring the many fascinating nuances of the fast-evolving world of crypto.