The recent Ethereum (ETH) price rally has been significant, but it has not yet attracted the participation of large Ethereum whales. This lack of involvement from major players suggests that there could be further upside potential for ETH, possibly pushing the price past $4,000.
Ethereum Whale Participation Pending
Amid ongoing developments surrounding the potential approval of a spot Ethereum ETF, the price of Ethereum has surged more than 30% in the last two days, climbing above $3,800. According to on-chain data, this is the most bullish sentiment observed in the Ethereum market since September 2023.
On-chain data provider Santiment reports that the number of small Ethereum wallets (holding 10 or fewer ETH) has reached an all-time high of 121.74 million. In contrast, "smart money" wallets (holding between 10 and 10,000 ETH) have decreased by 5.8% over the past year, while large whale wallets (holding over 10,000 ETH) have declined by 10.6%. This indicates that big players have yet to join the current market rally. Their eventual participation could potentially drive the ETH price above $4,000, targeting new all-time highs.
Drivers of the Ethereum Price Rally
The recent price rally in Ethereum is primarily driven by the anticipation of an Ethereum ETF approval and significant spot buying activity on Coinbase. While some major players, such as Standard Chartered, expect the approval to come within the week, other market analysts believe it could take a few more weeks.
ETH Price Action Ahead
As of press time, Ethereum is trading at $3,758, with a market cap of $452 billion. The price is approaching a high-time-frame resistance zone between $3,850 and $4,050. Despite higher demand for Bitcoin following the ETF news, its price dropped, as noted by popular analyst CryptoAceBull.
While the approval of an Ethereum ETF would be a long-term positive development, potentially driving ETH to $12,000 within a year or two, short-term predictions indicate a possible rejection at the current resistance zone, with a potential test at $3,600. Consolidation around $3,900-$4,000 could pave the way for ETH to reach new all-time highs.
Additionally, the ETH/BTC pair is nearing its previous consolidation level. If it holds above 0.055, altcoins could perform well in the short term. However, a rejection at this level could trigger a short-term downtrend for altcoins. Analysts predict that the ETH/BTC pair will bottom out in Q2, potentially leading to a significant move in Q3 and Q4.
Ethereum co-founder Joe Lubin, who also founded the crypto infrastructure firm ConsenSys, stated that the approval of a spot Ether ETF could lead to a "floodgate" of demand for Ethereum. “There’s going to be a pretty large amount of natural, pent-up pressure to purchase Ether through the ETFs,” Lubin said while speaking to DLNews.
In summary, while Ethereum whales have yet to join the current rally, their potential participation could drive ETH prices higher, especially with the anticipated approval of an Ethereum ETF. The market remains optimistic, with the potential for significant price movements in the coming months.
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