Ethereum Price Analysis: Whale Accumulation Fuels Potential Breakout Rally to $4000

Ethereum Price Analysis: The cryptocurrency market has been witnessing a modest upswing since the completion of Bitcoin Halving last Friday. The renewed recovery pushed the Bitcoin price to $37000 and bolstered the altcoin market to enter a relief rally. Thus, the second largest cryptocurrency by market cap Ethereum rebounded from the 38.2% Fibonacci retracement level— a healthy pullback setting the asset for a higher rally.

Also Read: Solana, Ethereum, Bitcoin Price Analysis — American Roundup April 23

Falling Wedge and Whales’ Accumulation Signal Bullish Outlook

Amid the fourth Bitcoin halving, the ETH price correction recently bottomed at the combined support of 38.2% FIB and $2875. The positive upswing has uplifted the asset by 12.87% in five days to reach the current trading value of $3236. 

An analysis of the daily chart shows the Ethereum price is developing a falling wedge pattern— a technical setup often considered a minor correction before a significant rally. 

Moreover, the recent on-chain data reveals a marked increase in Ethereum (ETH) accumulation by notable investors, suggesting a bullish sentiment in the cryptocurrency market. A wallet possibly associated with Justin Sun, known as “0x4359,” has been particularly active, withdrawing 4,666 ETH ($14.91M) from Binance and purchasing 132,054 ETH ($420M) since April 8. Another new player, “0x9EB0,” has also withdrawn 7,182 ETH ($23.06M) from Binance within 18 hours.

Whales are bullish and accumulating $ETH!

0x4359 (possibly #JustinSun) withdrew 4,666 $ETH($14.91M) from #Binance again 6 hours ago and he had bought 132,054 $ETH($420M) at $3,173 since Apr 8. https://t.co/ET5sqAhv9X

Fresh wallet"0x9EB0" withdrew 7,182 $ETH($23.06M) from… pic.twitter.com/NRakiuqNbp

— Lookonchain (@lookonchain) April 23, 2024

Additionally, wallet “0x4446” withdrew 11,892 ETH ($37.77M) and engaged in derivatives on Compound by depositing ETH and borrowing USDT, indicating strategic market positioning. Meanwhile, “0x1958” has opted for staking, withdrawing 5,181 ETH ($16.28M), and investing in DeFi platforms Bedrock and Pendle.

Such accumulation despite a correction trend signals the smart money trade expects the continuation of the prevailing rally.

Thus, the ETH price is likely to break the wedge pattern on the upside, bolstering a potential rally to a $4090 high.

Technical Indicator

• Relative Strength Index: The daily RSI slope rises to 50% indicating the prior bearish sentiment leaning to neutral.
• BB indicator: The downticks in the lower boundary of Bollinger Band reflect are still active towards this asset.

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