We analyze the recent changes in the Ethereum market and their correlation with Bitcoin price fluctuations. Sustained investor interest coupled with heightened activity from major holders may influence future price growth.
Correlation Between Bitcoin and Ethereum
In recent weeks, Ethereum has demonstrated a considerable degree of correlation with Bitcoin prices. This connection may persist if Bitcoin begins to rise. An analyst noted that Ethereum could surpass the $4,000 mark if Bitcoin exceeds $120,000. Despite a recent correction that was less severe than anticipated, Ethereum holders maintain an optimistic outlook.
Institutional Interest in Ethereum
Data from Glassnode indicates that the number of whale addresses holding over 10,000 BTC has significantly increased. In the last month, this number rose by 50, totaling around 1,050 addresses. This indicates that top Ethereum holders are actively accumulating more assets. Institutional investors are also showing interest, injecting over $1.8 billion into Ethereum spot ETFs.
Long-term Trends and Expectations for Ethereum
ETH continues to trade within a long-term ascending wedge pattern supported by rising support levels. A retest of the $3,900 mark is expected by the end of July. However, upcoming price fluctuations and supply pressures will be crucial for determining whether a breakout from this pattern occurs. A strong wave of sell pressure could lead to further retracement, while ETH's potential for price increases remains an important consideration.
The current situation with Ethereum highlights the need for careful monitoring of market fluctuations, especially regarding Bitcoin's influence and institutional investor interest. With the activity of major holders and recent investments, the cryptocurrency holds potential for further growth.
