Ethereum Price to Rally Another 20% Fueled by Unquenchable Whale Demand

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After reaching a new milestone of around $3,033 on Tuesday, Ethereum’s (ETH) price has signaled the bulls are in control. With only 40 percent to reclaim its all-time high, Ethereum price has initiated the much-awaited altseason through heightened cash rotation. Moreover, Bitcoin price is almost reaching the mid-cycle top, and investors are betting on the altcoin market to book more gains

Spot Ethereum ETF Frenzy

The possible approval of spot Ethereum exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC) was dramatically boosted by the approval of spot Bitcoin ETFs. According to Bernstein analysts Gautam Chhugani and Mahika Sapra in a report earlier this week, there is a 50 percent chance the U.S. SEC will approve the spot ETH ETFs by May. As a result, ETH buyers have accelerated the accumulation pace.

Increased Ether Whale Demand

Giant whale 0x7a9 allegedly bought 13,526 $ETH ($39.85M) at ~$2,947 again!
• withdrew 10,136 $ETH ($29.85M) from #Binance
• bought 3,390 $ETH with 10M $USDT #1inch

Overall, the whale has bought 64,501 $ETH ($185.5M) in the past 3 days!

It also withdrew another 40M $USDT from… https://t.co/UHIVXfx6Wq pic.twitter.com/ySbvIv2mux

— Spot On Chain (@spotonchain) February 21, 2024

According to on-chain data analysis, several crypto whales have been spotted on an Ethereum buying spree in the past few days. For instance, a single crypto whale has acquired 64,501 ETH worth over $186 million in the last three days. Another crypto whale, thought to be Justin Sun, withdrew 10k ETH worth around $29 million from Binance on Wednesday and now holds over 92k ETH. A different crypto whale has acquired over 24k Ether from Kraken in the past year. 

Ethereum’s Plan to Sustain L1 Championship 

The Ethereum core developer led by Vitalik Buterin understands the competition for the L1 industry is very high led by Solana (SOL), and Cardano (ADA), among others. As a result, the Ethereum core developers are preparing to enable the Dencun to upgrade in the coming weeks to reduce layer two transaction fees via protocol-danksharding.

Short-term ETH Price Targets

Ethereum price aims to rally further toward $3,150 and $3,300 in the coming months. The next level after that would be $3,600, which could trigger a rally toward the all-time high. Furthermore, the weekly Relative Strength Index (RSI) has rallied above the 70 level for the first time since the beginning of the 2022/2023 bear market.