Ethereum Price Today: $900M Buying Spree as Bitcoin Hits $100K
Ethereum (ETH) price today trades at No data found for ethereum on 43 minutes ago as of No data found for ethereum on 43 minutes ago after shooting up nearly 20% since January 13. This impressive recovery is due to Bitcoin’s climb to revisit the historic $100,000 level. Despite the bounce, ETH is down No data found for ethereum on 43 minutes ago after No data found for ethereum on 43 minutes ago% in the last 24 hours as of January 16.
*Ethereum price updated as of No data found for ethereum on 43 minutes ago.
Can Ethereum (ETH) Price Bounce Amid $900M Buying Spree?
Sanitment’s on-chain data shows that addresses holding between 1K and 10 K ETH increased their stack from 14.17 million to 14.44 million since January 7. Considering the current price of ETH, the 270,000 tokens accumulated by this cohort are valued at nearly $900 million.
Such a massive accumulation in a short period indicates demand. Hence, the recent rally will likely continue in the long run regardless of short-term volatility.
Falling Wedge Setup Forecasts Bullish Outlook
Since December 16, Ethereum (ETH) has set up three distinctive lower highs and two lower lows. Connecting a trendline to the swing points shows a Falling Wedge setup. This technical formation forecasts a 17% price rally that targets $4,000. The target is obtained by measuring the distance between the first swing high and low and adding it to the breakout point.
Strategic Support & Take-Profit Levels For ETH Traders
In this case, Ethereum will likely continue its descent toward the support zone, extending from $3,132 to $3,057. This zone is a good place to scoop more ETH. For short sellers, this area will be a good place to book profits. Hence, a dip into the $3,132 to $3,057 zone will lead to a massive spike in buying pressure from sidelined investors accumulating more ETH and short sellers closing their positions. As a result, ETH will trigger a volatile move to the upside that retests the upper limit of the Falling Wedge.
A decisive daily candlestick close above the Wedge’s upper trend line around $3,400 will confirm a breakout from the setup. In such a case, the key targets for short-term investors to book profits include $3,592, $3,975 and $4,069.
Invalidation Thesis
While the outlook for Ethereum looks bullish from a big-picture perspective, investors need to consider the possibility of a bearish outlook. Investors need to watch the $3,132 & $3,057 support levels. A breakdown of this zone will signal a weakness from buyers and potentially kickstart a steep 13% correction to $2,657. Beyond this ETH could also revisit the $2,341 barrier if the selling pressure is too high.
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