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Ethereum Price Could Follow Bitcoin Rise and Hit $4,000

Last Updated February 29, 2024 2:57 PM
Nikola Lazic
Last Updated February 29, 2024 2:57 PM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • Ethereum’s price nears $3,500, aiming for $4,000.
  • Large transaction volume and whale holdings increase.
  • Potential correction looms, yet bull cycle continues.

As the price of Bitcoin gets close to its all-time high, the general crypto market is in a buying frenzy. Recently, the number two crypto, Ethereum (ETH), has risen nearly 60%, reaching a high of $3,500 on February 29. 

There aren’t any signs of diminishing momentum. Instead, the ETH price is showing a promising pattern that could indicate $4,000 at its next target.

Ethereum On-chain Data

Most Ethereum investors profit around $3,400, with 78.27% in the money, while 19.57% have bought at a higher price, according to data from IntoTheBlock .


On-chain data
The majority of ETH holders are in the money.

Larger transactions have risen from its usual 4,500 txs, to a high of 11,540 txs, indicating that investors with higher amounts of capital have been flocking into the cryptocurrency. 

On-chain data
The number of large transactions increased.

This is also evident by looking at the ETH holding concentration, as we saw an increase in whale holdings. Over the last 30 days, 5.37% of whale holdings have increased, to the detriment of investors and retail. 

On-chain data
Whale holdings increased.

These metrics suggest that, although Ethereum’s price increased, there isn’t any interest in selling. Instead, the smart money is increasing activity. The whales’ purchasing power could positively affect the price in the following period. 

Ethereum (ETH) Price Analysis 

After retesting its ascending support level of $1,000 in June 2022, Ethereum started a new major uptrend. Its previous ascending flat triangle was the first bullish structure. Inside the triangle, there are the first two sub-waves of a higher degree five-wave impulse. 

Daily chart
Correction is looming but $4,000 is getting near.

The current high is near completion, but this might not be the end of its third wave, with potentially one more high of around $4,000 to come. The chart shows an uncompleted five-wave pattern. In turn, this means that even though ETH might stop, it should continue moving on after it consolidates.

Despite the 1.618 Fibonacci extension level often seen as a climax of wave 3 the uptrend continued past this resistance. The Relative Strength Index shows overbought conditions, suggesting a potential correction may be imminent. However, the price remains strong without apparent signs of faltering.

After the momentum of the current rise eases, a correction is expected as part of a larger wave four. Nonetheless, given the start of a new bull cycle, ETH is anticipated to continue its ascent, possibly reaching new highs in the near future.



Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.


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