Ethereum, over the last few months, has had a bit of history with the $2,000 zone.
This is unsurprising since the $2,000 zone is one of the largest psychological resistances on the Ethereum chart.
However, the cryptocurrency's general outlook flipped bullish ever since it broke and even closed above this price level on 9 November.
Ethereum, at the moment, is managing to keep itself above this zone despite the bears' attempt to sink the bullish ship.
Here are a few reasons why the bears may now be backing down, and why we may see a $2,500 Ethereum sometime soon.
According to a recent post from on-chain data analytics platform, Santiment on X, the whales have suddenly begun buying Ethereum for reasons best known to them.
Santiment notes that this buying spree is so serious, that the 200 largest Ethereum wallets have now accumulated about 62.76 million ETH. According to current prices, this puts their ETH bags at over 132 billion USD.
Santiment goes further to suggest that this buying spree has been going on for a long time.
The whales accumulated about 30.3% more of their current holdings right around this time last year, starting from 21 November 2022.
Fast forward a year from then, and the top 200 addresses now command a staggering 52% of Ethereum's circulating supply.
This isn't all.
Santiment concluded its post by stating that exactly a year after the whales' buying spree began, the number of newly generated addresses has also spiked by a whopping 94.7K new ETH wallets this week alone.
This is also the highest spike we have seen in Ethereum's number of new wallets since July when Ethereum attempted to break past $2,000 for the third time this year.
Popular trader and analyst on Twitter, @ali_charts, also had something to say about the Ethereum whales.
Ali, citing a chart from Glassnode (shown above), mentioned that over the last week or so, the "mega-whales" have entered the first serious accumulation spree in 9 months.
Ali went further to say that these "mega-whales" buying Ethereum so seriously, may be a strong signal that Ethereum is about to turn highly bullish.
In another tweet, Ali acknowledged that the moment Ethereum overcame the resistance line between 1,982 and $2,044, 1.67 million wallets simply jumped in and bought a staggering 38.7 million $ETH.
At current prices, this means that all of these wallet addresses have scooped up nearly $80 million worth of ETH in as little as two weeks.
Given that Ethereum has already crossed one of the strongest resistance zones below $4,000 (around $2,000), it might become fairly easier for the cryptocurrency to reach "yearly highs", Ali says.
Ethereum, in the charts, is at one of the most crucial points of the year.
According to the chart displayed above, Ethereum seems pretty determined to break past $2,147.
Keep in mind that the cryptocurrency attempted such a breakout from this zone in mid-April, but was rejected and forced to crash down to $1,540 on 17 August, 12 September, and 11 October respectively.
Fast forward to November, and Ethereum has tested this zone… twice.
If this turns out to be Ethereum's lucky break, the Fibonacci tool drawn on the cryptocurrency's weekly chart (shown above) puts the likely price target at slightly above $2,500 ($2,531).
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