Key Takeaways
- ETH price has rebounded above $2,600 in the last 24 hours after dipping below $2,500 over the weekend.
- On-chain data shows strong support between $2,311 and $2,392, with 65 million ETH bought in that range.
- Ethereum whales added 590,000 coins since early June, indicating confidence in ETH’s price recovery.
Ethereum (ETH) price has regained ground after its breakdown below $2,500. On several occasions, CCN revealed that ETH had formed a bull flag and was on its way to retesting $3,000.
But over the weekend, bears invalidated that structure, sending the cryptocurrency’s value below $2,500. But as the new week began, Ethereum’s price increased again.
This time, it has surpassed $2,600, and there are signs that it could climb higher. Here is why.
Ethereum Tests Critical Level
To support this bullish outlook, we analyzed Ethereum’s In/Out of the Money Around Price (IOMAP) data. The IOMAP helps identify key support and resistance levels by highlighting where addresses acquired ETH and whether they are profitable or lost.
Generally, a high concentration of coins in profit creates a strong support zone, while clusters of loss addresses indicate potential resistance.
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As of this writing, the strongest support for ETH lies between $2,311 and $2,392, where 2.4 million addresses purchased over 65 million coins, most of which remain profitable.
In contrast, the resistance zone between $2,631 and $3,027 holds fewer addresses and a smaller volume of unrealized losses.
Given this imbalance, Ethereum’s price will likely break above the overhead resistance and continue its recent upswing.
Whales Hold Firm
Furthermore, Ethereum whales are reinforcing the bullish outlook. According to Santiment data, there has been a notable uptick in the ETH balances held by large investor cohorts.
Specifically, addresses holding between 10,000 and 100,000 ETH have increased their balances from 26.13 million to 26.72 million since the start of June — an addition of 590,000 ETH worth over $1.5 billion.
Likewise, wallets holding between 10 million and 100 million ETH have grown their holdings from 62.63 million to 63.26 million in the same period.
This accumulation by large holders signals growing confidence in Ethereum’s short-term upside. If the trend persists, ETH’s price could rally toward $3,000 or even break above it.
ETH Price Prediction: Pressure Building
From a technical standpoint, the 4-hour chart reveals a rise in the Bull Bear Power (BBP) indicator. The BBP measures the balance between buying and selling strength.
When the BBP is negative and shows red histogram bars, it signals bearish control and potential price decline. However, the BBP is positive in this case, indicating that bulls are currently in control.
If this momentum holds, Ethereum’s price could break above the $2,748 resistance level, especially as the price trades above the upper boundary of a descending channel.
A successful breakout could lead to a climb to $2,880 and possibly a retest of the psychological $3,000 mark.
However, if bearish momentum returns, this bullish outlook could be invalidated, with ETH potentially dropping back to $2,322.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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