Ethereum (COIN: $ETH) could soon hit a new 52-week high. The whales are accumulating coins and currently hold $132.1 billion worth of Ethereum. As of November 25, 2023, the whales control 52% of the ETH circulating supply.
Why ETH Could Reach New Highs
Ethereum could soon reach a new high because Bitcoin has already hit a new 52-week high. Traditionally, ETH and BTC correlate positively. Additionally, Ethereum has already rallied past the $2000 psychological barrier, which it overcame on November 9, 2023.
One of the most significant predictors of a new high is whale activity. The 200 biggest ETH wallet currently holds 62.76 million Ether tokens, valued at around $124.1 billion. Since November 21, 2022, these wallets have increased their holding by 30.3%, according to a tweet by Santiment. The tweet also noted that as of November 21, 2023, traders created 94.7K new ETH wallets. Whales accumulating ETH will undoubtedly affect the price.
Another reason for the bullish sentiment around ETH is that it recently overcame a critical resistance zone. In a November 24 tweet, Ali Martinez, a renowned crypto analyst, pointed out that 1.67 million crypto wallets bought 38.73 million ETH in the critical resistance zone of $1,982-$2,044. He pointed out that there was minimal resistance, paving the way for new highs for ETH.
The Crypto Fear & Greed Index is currently at 66, showing an overwhelming greed sentiment amongst investors. Thus far, the price of ETH has stagnated at around $2100. However, the recent breakthrough of BTC above $38K has brought some relief for Ethereum holders. They now feel confident that ETH could overcome the $2100 resistance soon.
Ethereum Price Forecast
Ethereum’s transaction count also remains high, consistently surpassing 1 million, which shows confidence in the coin. However, there is still a tiny possibility of a reversal, which could wipe out the bullish sentiment.
If Ethereum gets past the $2100 resistance level, the next price point will be $2500. However, this could attract heavy sellers, dropping the price to around $1860. If the ETH price drops to $2130, it could consolidate around the $2100 mark.
Should You Buy Ethereum?
In the past seven days, Ethereum holders have seen gains of 5.65% and 15.92% in the past 30 days. The trend has been generally bullish for the second-largest coin by market cap. If you want to get some ETH, now would be a good time, as all signs point to a coming rally. However, there is also a possibility of a reversal, as is common in the crypto market. In general, only invest an amount you can afford to lose.
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