Ethereum (ETH) has shown impressive performance over the last two months, reaching a crucial resistance level above $3,953. This could either delay or confirm further bullish sentiment in the market.
Market Overview
The largest altcoin, with a fully diluted market cap of about $476 billion and a daily average traded volume of about $30 billion, successfully retested its breakout from a multi-year declining logarithmic trend. The price might consolidate in the near term to attract more buyers, especially with Bitcoin (BTC) rallying beyond $105k earlier today.
Ethereum Whale Activity
According to on-chain data analysis from Glassnode, the number of Ethereum addresses holding more than 10k ETH has been rising exponentially. This growth coincides with the decline in Ether supply on centralized exchanges, with over 95k ETH withdrawn in the past seven days.
Institutional Investments
US spot Ether ETFs have registered more than $2 billion in net cash inflows over the past three weeks. BlackRock's ETHA was the leader with a weekly cash inflow of about $854 million last week. The interest in Ether by institutional investors is notably increasing, especially as a means to diversify crypto portfolios.
With the increasing interest from institutional investors and technical analysis pointing towards a price target of $5,250, Ethereum's bullish rally might be confirmed if the weekly Relative Strength Index (RSI) surges above the 70 percent level again.
