- Ethereum’s recent surge shows smart money flowing in, but 9.9 million addresses holding $1.5 billion in ETH could trigger a sell-off.
- Despite a bullish reversal, a pullback to $2,200 remains possible as fear and greed balance out.
Ethereum has seen some interesting price action lately. In the past 24 hours, ETH surged by 5.23%, sparking optimism among investors. A 30% spike in trading volume and a snap-back from the $2.5K dip indicate that smart money is flowing into the market. With Ethereum on the move, the big question is: How high can this rally go?
Ethereum’s price surge is no fluke. In fact, it’s driven by smart money injecting $100 million into the market. This boost came right when Ethereum appeared ready for a retracement to pre-election levels. Instead, aggressive buyouts kept $2.5K as solid support. The result? A crucial save for ETH, especially after a 32% drop from its $4,016 peak. At this point, more than 95% of Ethereum holders were in profit.
But things have changed. Now, only 66% of addresses are in profit. While this is still a healthy number, history suggests that ETH isn’t quite at a bottom yet. Some fear that this could signal a pullback, especially with market uncertainty hanging over the crypto space.
The market’s risk appetite is slowly creeping back, and futures traders are cranking up leverage. In just one day, $37.21 million in Ethereum shorts were wiped out. In the meantime, more than $1.5 billion in new positions were opened. Whales and institutions clearly saw this coming, loading up on ETH ahead of a potential breakout.
But there’s another issue: Ethereum’s price is facing resistance. ETH/BTC recently hit a three-year low. However, a bullish reversal is starting to take shape. The MACD has turned green, signaling potential upside, while Bitcoin (BTC) consolidates. Investors are eyeing Ethereum for rotation, but exchange reserves have jumped by over 4%. This tells us that traders aren’t fully in HODL mode yet.
The next big question is whether Ethereum can hold its ground. A staggering 9.9 million addresses—holding 62.14 million ETH—flipped into profit when Ethereum hit $2,560. That’s $1.5 billion worth of Ethereum that could flood the market if these addresses decide to sell.
Smart money will need to maintain control to keep ETH in consolidation before a potential breakout. If fear and greed start to fade, Ethereum could experience another pullback. If that happens, ETH may dip back to around $2,200.
Right now, the odds seem to favor a pullback. However, the days ahead will determine whether Ethereum can continue its upward trajectory or face more pain. Stay tuned.
