Ethereum’s price fluctuation hints at a bullish turn as whales increase buying activity ahead of the anticipated Pectra upgrade. Despite recent stagnant prices, indicators suggest potential growth, with possibilities of reaching $2200 in the upcoming week.
Fast Summary: Ethereum is seeing increased interest from large investors, or “whales,” as it approaches the impending Pectra upgrade. This major update aims to enhance transaction speeds and overall network scalability. Although the ETH price has been stuck around $1800, there’s speculation it might surge past $2200 in the near future based on recent buying trends and increased whale activity.
Article Body: Ethereum’s price recently dipped below its support levels but has since managed to reclaim that position, indicating rising buying pressures. The upcoming Pectra upgrade, set for release in a few days, is anticipated to significantly increase trading activity around Ethereum by improving transaction speed and scalability for validators.
Despite Ethereum’s price stagnating for over two weeks, investors haven’t lost hope. Accumulation patterns are positive, with addresses increasing by 22.5% since March. Additionally, data shows a negative net flow from exchanges, suggesting both retail and whale investors are withdrawing their holdings, further indicating a growing scarcity of ETH.
Interestingly, whale activity has surged recently, highlighted by a dormant whale resurfacing after four years to withdraw more than 1200 ETH. This uptick in whale accumulation points to a strong bullish sentiment surrounding Ethereum right before the major upgrade. The ETH/BTC pair, now at a yearly support level akin to January 2020 lows, shows signs of being oversold, hinting at a potential reversal that could impact other altcoins as well.
So, can we expect ETH to reach $2200 this week? The token broke out of a descending triangle pattern in April and is now within a rising triangle, albeit currently caught around $1800 after retreating from recent highs near $1842. With support holding around $1785, there seems to be a clearer growth route ahead.
Looking at the weekly charts, ETH appears on track for extended consolidation within a $1500 to $2500 range. The recent bearish indication from the weekly Gaussian channel suggests that any major breakout may only occur when the price surpasses these average bands. Interestingly, the weekly RSI has hit a notable low, mirroring trends seen during Ethereum’s 2022 lows, which could signal a rebound towards new highs if the momentum picks up.
