Ethereum (ETH) has demonstrated resilience in recent days, rebounding from a sharp drop caused by the Bybit hack, though its price remains down by nearly 18% over the last month. Despite the ongoing volatility, Ethereum’s recovery has been supported by renewed buying momentum, as indicated by its Relative Strength Index (RSI) and an increase in whale activity.

ETH’s RSI Shows Positive Momentum

Ethereum’s RSI has made a noticeable recovery, climbing from a low of 39.2 to its current value of 58.6. This shift suggests a reversal in the selling pressure that plagued the market following the Bybit hack. The RSI, a technical indicator that tracks the speed and magnitude of price movements, is now in the neutral range, but leaning towards a bullish outlook. A reading of 58.6 shows that Ethereum still has room for growth before entering overbought territory, indicating the potential for continued price gains in the coming weeks.

Increased Whale Activity Fuels Optimism

A key factor driving Ethereum’s recovery is the increased accumulation by whale investors. Addresses holding at least 1,000 ETH have risen from 5,680 on January 25 to 5,828 by February 22, marking the highest number of whale accounts since December 2023. This surge in whale activity is a sign of growing institutional confidence, with large investors potentially positioning themselves for future price gains.

Whale accumulation plays a crucial role in Ethereum’s price dynamics, as it reduces the circulating supply of ETH. When whales buy and hold their tokens, it decreases the available supply, which could push prices upward if demand continues to rise. The steady growth in whale addresses suggests that large investors expect ETH to gain value, which could set the stage for further price appreciation.

Golden Cross on the Horizon?

Ethereum’s price chart is showing signs of a potential “golden cross,” a bullish technical pattern that occurs when the short-term moving average crosses above the long-term moving average. This signal typically indicates a shift in market sentiment, favoring buyers and suggesting a potential upward trend for Ethereum.

If Ethereum can break through its current resistance at around $2,876, the next target could be $3,020, followed by a possible move toward $3,442. However, Ethereum has faced significant resistance at the $2,900 level in previous attempts, which could present challenges for the asset as it seeks to push higher.

Resistance at $2,900 Remains a Key Obstacle

While Ethereum has shown promising signs of recovery, the $2,900 resistance level remains a significant hurdle. Despite the increasing bullish sentiment, ETH has struggled to stay above this price point in recent attempts. This indicates that there may be selling pressure or hesitation among market participants at this level. If Ethereum fails to break through $2,900, it could experience a temporary pullback, with support levels at $2,551 and $2,159 potentially coming into play.

Looking Ahead: A Bullish Outlook

Ethereum’s recent price action has been characterized by renewed buying pressure, supported by rising whale accumulation and the potential for a golden cross. These factors suggest that Ethereum could be on the verge of a more significant breakout if it can overcome the $2,900 resistance.

While challenges remain, including the possibility of price retracement if the resistance proves too strong, the overall outlook for Ethereum appears bullish. If momentum continues to build, Ethereum could see its price rise towards the $3,020 target, with even higher levels on the horizon. Investors should monitor key levels and market sentiment closely to gauge Ethereum’s next move in the coming weeks.