Ethereum (ETH) Price Could Get a Boost as Whales Return to the Market

Ethereum (ETH) price has gained 6% over the past week, attempting to build momentum for a surge toward the $4,000 level. The recent formation of a golden cross, combined with an RSI currently at 63.6, shows the potential for continued upward movement.

Additionally, whale accumulation has resumed, with the number of wallets holding at least 1,000 ETH rebounding after a brief decline earlier in January. As ETH hovers near key support and resistance levels, its ability to maintain bullish momentum will be critical in determining whether it can sustain its rally or face a pullback.

ETH RSI Is Down From 70

Ethereum Relative Strength Index (RSI) is currently at 63.6, after briefly surpassing the overbought threshold of 70 between January 3 and January 4. The RSI measures the speed and magnitude of price movements on a scale from 0 to 100, offering insights into market momentum.

Readings above 70 indicate overbought conditions, suggesting a potential pullback, while readings below 30 signal oversold conditions, which may point to a price recovery. ETH’s current RSI below 70 indicates that while buying pressure has eased, bullish momentum still remains in play.

ETH RSI. Source: TradingView

At 63.6, ETH’s RSI suggests a neutral-to-bullish outlook for the short term. The retreat from overbought levels could indicate that the asset is entering a phase of consolidation or mild correction as traders take profits.

However, the RSI remains comfortably above 50, highlighting continued buying interest. If the RSI rises again toward 70, ETH could see renewed upward momentum, but a further drop below 50 might signal waning bullish momentum, potentially leading to a broader price retracement.

Ethereum Whales Are Accumulating Again

The number of Ethereum whales holding at least 1,000 ETH reached a month-high of 5,634 on December 25 before declining to 5,604 by January 2. Tracking whale activity is crucial because these large holders can significantly influence market trends.

An increase in whale accumulation often signals growing confidence in the asset, potentially driving prices higher, while a decline may indicate reduced interest or selling pressure.

Addresses with Balance >= 1,000 ETH. Source: Glassnode

After reaching 5,604 on January 2, the number of whales began climbing again and now stands at 5,615. This rebound in whale activity suggests renewed interest from large investors, which could support ETH price in the short term.

If the upward trend in whale accumulation continues, it could indicate growing market confidence and increased buying pressure, potentially fueling further price gains. Conversely, any decline in whale activity might signal hesitation among major investors, which could weigh on ETH momentum.

ETH Price Prediction: Will the $3,543 Support Hold Strong?

Ethereum price recently formed a golden cross on January 4, a bullish signal that occurs when the short-term EMA crosses above the long-term EMA. While ETH price has yet to see significant gains following this formation, the technical setup suggests potential upward momentum.

If the uptrend strengthens, supported by RSI levels and renewed whale activity, ETH price could test the resistance at $3,827. A breakout above this level could pave the way for further gains, targeting $3,987 next.

ETH Price Analysis. Source: TradingView

However, the support at $3,543 is critical for ETH to maintain its current uptrend. If this support fails, ETH could face increased selling pressure, potentially reversing its momentum. In such a scenario, ETH might retest lower levels, with key support zones at $3,300, $3,200, and $3,096 coming into focus.

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