This week, Ethereum has become the focus of the market due to its dramatic price movements and the key whale activity affecting the ecosystem. Over the past three days, one of the most active participants to date, Abraxas Capital has earned 185,309 ETH, worth around $399 million from the central exchange. The dramatic price of ETH has risen from about $1,800 to $2,600, representing nearly 44% of the rally within a week, coinciding with this activity.
Given the scale and timing of this withdrawal, institutional accumulation appears to be a major factor in current price momentum. Plus, this is not an isolated action. Abraxas was taking 138,511 ETH, and was subsequently valued at $297 million by the exchange a few days ago. That’s over $695 million in Ethereum accumulated within a week.
This behavior strongly suggests a long-term conviction in anticipation of the catalyst that the market is not yet priced with larger macrotrends. Technically speaking, Ethereum has overcome many levels of resistance, such as the 50-day and 100-day EMA, and is currently striving to test 200 EMA at the $2,600 level. Despite today’s red candle pointing to a short fix, the bigger setup is still bullish.
Volume surged during the breakout, suggesting that the market is a bit overbought even though RSI is currently above 77, but could still boost momentum once the forces are finished. You may need to retrace the sound from $2,400 to $2,450 to raise the second leg.
Abraxas and other investors could reach the psychological $3,000 level if they maintain aggressive purchases while ETH is above $2,300. Ethereum may be able to retest the $3,300-3,500 range that was last observed if it could break through that barrier in the 2021 bull market. The bottom line is that $3,000 ETH may no longer be a dream dream thanks to a large influx, significant breakouts and institutional interest.
