Cryptocurrency analyst IT Tech has provided detailed insights into the current market conditions of Ethereum, noting key trends in whale activity and price movements.
Overview of Ethereum Market Activity
According to IT Tech, Ethereum's large trading volume (LTV) remains lower compared to previous bull cycles in 2017 and 2021. This suggests that the market is currently driven more by retail investors rather than institutional-scale transactions that usually signal speculative swings.
Analysis of Whale Activity
While small increases in whale activity have been observed, these are not at levels that typically precede a major rally or significant sell-off. However, IT Tech warns that sudden increases in whale transactions are often a sign of impending price changes, making on-chain activity an important metric to watch.
Price Expectations and Potential Changes
Ethereum has successfully reclaimed the $3,000 level, but the analyst notes that a move towards $3,500 and beyond would require rising LTV as confirmation. Without this, Ethereum could consolidate or experience a pullback. IT Tech warns that if whale activity suddenly increases amid price weakness, it could signal dispersion and lead to a correction towards the $2,800-$2,500 range.
The analyst emphasizes the importance of monitoring on-chain activity in Ethereum as it can become an indicator of significant price changes.
