Home Altcoins News Ethereum Whales Buy $1B in ETH – $5K on the Horizon

Ethereum Whales Buy $1B in ETH – $5K on the Horizon

Ethereum Whale

Ethereum’s silent giants are making waves in the market. Over the past several months, large investors, often referred to as “whales,” have been quietly accumulating massive amounts of Ethereum (ETH). In fact, these whales have bought up more than $1 billion in ETH, sparking renewed optimism for the cryptocurrency’s future. As the price of ETH holds strong at key support levels, many are beginning to wonder if a $5,000 price target could soon be in the cards.

Whale Accumulation Signals Strong Confidence

Recent data from blockchain analytics firm Santiment reveals that Ethereum whales have been particularly active in recent months. Between late July and early August of 2024, addresses holding between 1,000 and 10,000 ETH accumulated a staggering 620,000 ETH, coinciding with a price rally that saw Ethereum’s value surge from $2,400 to $4,000.

This influx of capital has been a major factor behind Ethereum’s recovery. But it’s not just a one-time event. More recently, whales have continued their buying spree, adding another 330,000 ETH to their holdings. At the time of writing, Ethereum is trading at approximately $3,193, and this consistent accumulation is fueling optimism that ETH could soon be on the verge of another breakout.

Historically, whale activity tends to precede major price rallies. So, the ongoing accumulation could be a signal that Ethereum’s price is poised for another surge. But is a $5,000 price target realistic?

Ethereum’s Network Growth: A Mixed Bag

While whale interest is strong, Ethereum’s network growth is showing signs of slowing down. The number of new addresses interacting with the Ethereum blockchain spiked in December 2024, peaking at 181,000 new addresses. However, this growth has slowed significantly, with just 52,200 new addresses recorded by January 23, 2025.

This decline in network adoption raises concerns about Ethereum’s ability to maintain its upward momentum. Increased network activity is often seen as a positive indicator for the cryptocurrency’s price, as it suggests more people are using the network and investing in Ethereum.

Despite the slowdown in new addresses, Ethereum’s overall network activity remains solid, bolstered by the heavy buying from whales. However, for Ethereum to hit new price targets, continued network growth will be essential to ensure the ecosystem remains vibrant and in-demand.

Technical Analysis: Key Price Levels to Watch

From a technical standpoint, Ethereum has been moving within a well-defined range, with several key support and resistance levels shaping its price trajectory. Currently trading at $3,193, Ethereum is testing a crucial support level at $3,044, which corresponds to the 0.786 Fibonacci retracement level. This level has proven to be strong support in recent weeks, preventing ETH from falling below this threshold.

The 50-day moving average sits just above the current price at $3,507, acting as a significant resistance level. If Ethereum can break above this level, it could pave the way for a rally toward the $4,000-$4,200 range. A breakout above this zone could potentially set the stage for a move toward the coveted $5,000 mark, though that will depend on several factors aligning in Ethereum’s favor.

The 200-day moving average, currently at $2,984, continues to serve as solid support, further reinforcing the price floor for ETH. As long as Ethereum holds above these critical levels, the bullish outlook remains intact.

Short-Term Bearish Momentum: What to Expect?

Although the long-term outlook for Ethereum remains bullish, short-term signals suggest some caution. According to the Elliott Wave theory indicator, Ethereum is currently experiencing mild bearish momentum, with the indicator sitting at -3.67. This suggests that while the broader trend remains positive, ETH may face some downward pressure in the short term before it can break through key resistance levels.

Despite this, the ongoing whale accumulation serves as a reminder that there is strong confidence in Ethereum’s long-term potential. If ETH can continue to hold its ground and maintain support levels, it is well-positioned for future growth.

Can Ethereum Reach $5,000?

The $5,000 target remains a tantalizing prospect for Ethereum investors. Achieving this price will require more than just whale activity. Several factors must come together for ETH to break through its resistance levels and hit new highs.

Continued whale interest is certainly a positive sign, but Ethereum will need sustained network growth and broader market support to fuel further price increases. Additionally, macroeconomic factors, including global market conditions and investor sentiment, will also play a significant role in determining Ethereum’s price trajectory.

As it stands, Ethereum’s price consolidation around the $3,193 level offers a foundation for potential upward movement. If Ethereum can clear resistance at the $3,500-$3,600 range, it could set the stage for a push toward $4,000 and beyond. However, investors will need to remain vigilant, as resistance at these levels could delay ETH’s ascent to $5,000.

Final Thoughts: Ethereum’s Future Looks Bright, But Patience is Key

Ethereum’s recent whale accumulation paints a promising picture for its future. With over $1 billion in ETH purchased by large investors, there is no doubt that many believe in Ethereum’s long-term potential. However, achieving a $5,000 price target will not be without its challenges.

While whale buying is a strong indicator of confidence, Ethereum’s ability to break through resistance levels, coupled with sustained network growth, will ultimately determine if the $5,000 mark is within reach. For now, investors should keep a close eye on key technical levels and market conditions to gauge Ethereum’s next move.

In the ever-evolving world of cryptocurrency, Ethereum’s journey to new price heights will likely be a thrilling ride – and the coming months could hold the key to unlocking its full potential.

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Maheen Hernandez

A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5

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