- Ethereum bounces from key support at $3,540, signaling potential for a multi-year high amid bullish market trends.
- As Bitcoin rallies towards $100k, Ethereum prepares for its next price surge with altseason gaining momentum.
- Whale selling pressure persists, but Ethereum’s bullish outlook remains strong with rising institutional interest and ETFs.
Ethereum (ETH) has been displaying positive pressure in the process of creating a bullish pennant on the hourly chart. Ethereum with a $428.7 billion fully diluted market cap recently bounced from a crucial support area at $3,540 and is currently trading near $3,563 at the time of writing on Friday. This rebound may pave the way for ETH to rise to a multi-year high as the broader market remains favourable for cryptocurrencies.
Source: TradingView
Ethereum Set for Next Leg
With Bitcoin still on the path to reach $100,000, Ethereum is also gearing up for the next leg of the climb. The altseason, a period in which altcoins rally while Bitcoin stagnates or drops, is starting as the bitcoin dominance index approaches reversal. These changes in market dynamics could see ETH’s price rise even more as altcoins, including ETH, get more attention.
However, there has been a significant amount of selling from ETH whales even as bulls are in charge. The analytical platform Spot On Chain reported that Winslow Strong, the director of Qualia Research Institute, has recently moved 9,380 ETH, or approximately $33.7 million, to Coinbase. This comes after a series of sales that Strong made in early November where he disposed of 14,233 ETH at a cost of $3,431 per ETH making a total of $48.8 million.
ETH’s Bullish Long-Term Outlook
Nevertheless, the selling pressure continues to exert pressure on Ethereum, but the long-term outlook for the cryptocurrency is still bullish, thanks to institutional investors. The approval of Ethereum ETFs, and the growth of institutional investments will also likely push the price of ETH to new levels. CryptosRus believes that in the event that cryptocurrency adheres to the previous market cycles, the currency may soon hit new all-time highs, which will be a positive sign of future price increases.
Source: CryptosRus
The technical outlook of ETH remains bullish with the market fundamentals supporting its upside move. Despite certain whale activity, the overall sentiment remains positive because ETH and BTC are experiencing increased institutional demand and the latter’s rally continues to strengthen. As it stands, the technicals are as bullish as they have been in a while and the demand continues to rise, predicting the next big move for cryptocurrency.
