Key Insights:
Ethereum recently hit a new all-time high of $4,953 before cooling below $4,700.
Whales accumulated over 350,000 ETH in the past week, in a show of confidence.
Major price zones sit between $4,590 and $4,760, and could limit downside if a pullback happens.
Ethereum has been one of the strongest-performing cryptocurrencies this year, despite spending most of Q2 in decline. The price recently climbed to a fresh all-time high of $4,953, which is its first since 2021.
Traders are now debating whether Ethereum is preparing for a pullback or gearing up for a breakout toward the $5,500 mark or even beyond.
Ethereum has gained more than 85% over the past three months and is still up around 70% year-over-year. That performance has been a major source of confidence among large holders, who have been steadily adding to their bags.
One of the clearest signs of optimism is from whale activity. Over the past week, wallets holding between 1 million and 10 million ETH have added more than 210,000 ETH. That is equivalent to around $1 billion at current prices.
Ethereum’s cost basis distribution heatmap | Glassnode
Another group of large holders, with balances between 10 million and 100 million ETH has accumulated around 140,000 ETH, worth about $668 million. In combination, the whales have absorbed more than $1.6 billion in Ethereum within days.
This kind of accumulation is important because it reduces the supply available on exchanges. It also shows that investors have a strong belief that Ethereum still has room to grow despite already being near new highs.
From a technical standpoint, Ethereum is trading close to a range. On the upside, the 0.618 Fibonacci extension at $4,948 is one of the most important resistances. This means that a strong daily close above this level could open the door toward $5,496. This is just shy of $5,500.
On the downside, Ethereum needs to hold support at $4,610. Any failure to defend that zone could trigger a move toward $4,400 (even though whale action makes such a drop less likely).
Price outlook for Ethereum on the daily timeframe | TradingView
Within the daily timeframe, Ethereum is showing a new high at around $4,884, compared to its previous highs. However, the Relative Strength Index (RSI) has formed a bearish divergence and is indicating that momentum is weakening.
Meanwhile, immediate support sits between $4,400 and $4,450, with deeper support at $4,070 to $3,900 if selling pressure continues. This all means that the asset needs a strong push above $4,800 to invalidate the bearish divergence.
Another important factor is exchange flows. Recent data from Glassnode shows that more ETH is leaving exchanges than entering. A net outflow of more than 138,000 ETH was recorded. This indicates that holders are moving coins into private wallets, rather than preparing to sell.
Institutional activity also supports Ethereum’s long-term outlook. Companies like BlackRock and SharpLink Gaming have shown interest in ETH, which has been a major fuel for speculation that more institutional buying could push the price higher.
Ethereum’s ETF outflows have been limited compared to Bitcoin’s | Farside Investors
Farside data also shows that Bitcoin spot ETFs saw outflows of over $1.1 billion last week, while Ethereum’s spot ETF outflows were limited to around $241 million.
This said, Ethereum is trading at one of its most important junctures so far. If its strength holds and resistance near $4,950 breaks, ETH could rally toward $5,500 or even higher.
Analysts also predict that if institutional demand continues this way, the next major target could be $6,708.
However, if selling pressure builds and support zones start to fail, Ethereum could slip back toward $4,400 or even $4,000.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.