Crypto Quill

Ethereum is inching closer to the $3,000 mark after a solid rebound, fueled by increasing whale accumulation. The question remains—can this buying spree push ETH beyond key resistance levels, or will broader market conditions slow its progress?

Ethereum Holds Strong as Bulls Eye $3,000

Ethereum is staging a recovery after bouncing off a key support zone near $2,555, a level aligned with the 23.60% Fibonacci retracement. With increased activity in lower-priced exchanges, ETH is now hovering around $2,711, marking a steady uptrend.

A morning star pattern on the daily chart hints at growing bullish momentum, with two consecutive green candles forming. The Relative Strength Index (RSI) also signals an improving outlook, recovering from the oversold zone.

However, not everything is in favor of the bulls. The 50-day and 200-day Exponential Moving Averages (EMA) remain on a downward trajectory, with the looming possibility of a death cross—a bearish technical signal. This could act as a roadblock for Ethereum’s rally unless buyers maintain their grip.

Whale Activity Signals Accumulation

Whales appear to be making strategic moves, adding more Ethereum to their holdings. According to crypto analyst Ali Martinez, the number of wallets holding at least 10,000 ETH has increased by 2.3% since early February.

In another significant development, Santiment data reveals that between February 8 and 9, a staggering 224,410 ETH were withdrawn from exchanges. This large-scale movement from trading platforms to private wallets often suggests a decline in immediate selling pressure, reinforcing the bullish sentiment.

Key takeaways from whale activity:

• Whales holding 10,000+ ETH have increased by 2.3% since February began.
• Over 224,000 ETH were pulled from exchanges in two days, reducing potential sell pressure.
• Large holders accumulating ETH historically signals strong support levels.

Technical Barriers to Watch

While Ethereum’s rebound is encouraging, the road to $3,500 is filled with hurdles. The next immediate resistance lies at the 38.20% Fibonacci retracement level, around $2,784.

Breaking above this point could open doors to the $3,000 milestone. However, the death cross risk remains a major concern. If the 50-day EMA crosses below the 200-day EMA, it could trigger renewed selling pressure.

Traders and investors should monitor:

• $2,784 Resistance – A breakout could fuel further upside momentum.
• $3,000 Psychological Level – Historically, a strong resistance zone for ETH.
• Death Cross Risk – If confirmed, it could delay a major rally.

Market Sentiment and Bitcoin’s Influence

Ethereum’s price movement is closely tied to Bitcoin, which is attempting to reclaim the $50,000 mark amid fluctuating market conditions. If Bitcoin sees strong bullish momentum and approaches its all-time high, Ethereum could follow suit.

However, macroeconomic factors, such as interest rate decisions by the Federal Reserve and overall crypto market sentiment, will also play a role in ETH’s price action.

For now, Ethereum’s bullish trend remains intact, but traders should watch key resistance zones and potential whale movements to gauge the next big move.