Ethereum breaks out of a bullish pattern, signaling a potential rally. Whale accumulation and institutional inflows boost confidence in ETH’s long-term growth.
Ethereum Breaks Out—Is $3,000 Next?
Ethereum (ETH) is seeing strong accumulation from large investors, with analysts comparing its current pattern to last year’s February rally. ETH has recently broken out of a falling wedge, a historically bullish signal, and is now trading around $2,692.
Crypto analyst MerlijnTrader pointed out that Ethereum’s chart mirrors its parabolic run from last year. If history repeats, ETH could be on the verge of a sharp price increase in the coming weeks.
Technical Indicators Point to Strength
Ethereum’s Relative Strength Index (RSI) is at 52.28, suggesting mild bullish pressure. If buying continues, momentum could increase. The MACD line is above the signal line, another bullish indicator, showing growing buying pressure.
Additionally, the MACD histogram is trending up, reinforcing the potential for extended gains.
Whale Accumulation Signals Long-Term Confidence
Ethereum whales have been moving massive amounts of ETH off exchanges, signaling long-term holding rather than selling. According to Santiment, over 224,410 ETH were withdrawn from exchanges on February 8-9, the highest in 23 months.
Analyst Ali also noted that addresses holding 10,000+ ETH have increased by 2.3% since February 1, showing rising demand among major investors.
Institutional interest is also growing. Ethereum ETFs saw over $400 million in inflows last week, reflecting confidence in ETH’s long-term potential. Analyst TedPillows highlighted that Ethereum has maintained its uptrend support since May 2023, further strengthening the bullish outlook.
Could Ethereum Hit $4,000?
Several factors could drive Ethereum’s next major rally:
- Donald Trump reportedly buying ETH, adding to market speculation.
- Lower gas fees and scalability improvements making Ethereum more attractive.
- A potential break above $3,000, which could trigger FOMO buying and institutional interest.
If ETH surpasses $3,000, analysts predict it could surge toward $4,000 in the coming months, following a pattern similar to last year’s rally.
