Both on-chain data and technical analyses lend support to this optimistic perspective for ETH.
Ethereum’s price experienced a dip to as low as $2,100 on January 3, influenced by Matrixport’s ETF-rejection announcement . However, similar to other cryptocurrencies, Ethereum (ETH) has shown a swift recovery. Currently (January 8 2024) trading at $2,229, Ethereum is indicating a potential for a significant upward movement.
The optimistic forecast for Ethereum’s price is bolstered by a significant increase in Whale Transaction Count and Volume observed on January 3. This data, provided by Santiment , reveals the surge in transactions coincided with a substantial sell-off in the market, which is typically interpreted as investors purchasing during a price dip.
Given that the whale transaction count specifically monitors transfers valued at $100,000 or more, this increase is likely indicative of institutional investors engaging in a buy-the-dip strategy. The fact that this uptick in transactions aligns with a rise in trading volume further strengthens the argument for a bullish trend in Ethereum’s market.
On January 5, the blockchain analytics firm Spot On Chain highlighted the activity of a significant Ethereum whale , identified as ‘0x9314’. This whale invested a substantial $48 million to purchase 21,192 ETH, at an average price of $2,265 per coin. This individual has been actively accumulating Ethereum since last January, amassing nearly 80,000 ETH.
The purchases were primarily made through decentralized exchanges (DEXs) and Binance, with the whale paying an average price of $1,790 for each Ethereum.
IThese purchases were funded using loans obtained from decentralized finance (DeFi) protocols Aave and Liquidity. This strategy indicates a bullish outlook on Ethereum’s future price. As of the report, the whale’s investment has already yielded significant returns, with a profit of about 26%, amounting to more than $36.84 million.
LookOnChain, another analytics firm, has pinpointed two whales who made substantial acquisitions of Bitcoin and Ethereum in the wake of their recent price declines. According to the analyst’s report , these investors collectively purchased over 1,300 ETH, with each unit priced at approximately $2,225.
A prominent cryptocurrency analyst, known by the pseudonym Credible Crypto, has shared an optimistic prediction for Ethereum (ETH) on X. He forecasts Ethereum could reach a price of $10,000 in 2024. This prediction implies a substantial increase of more than 340% from its current price level.
Credible Crypto has also shared an even more ambitious maximum price target for Ethereum in 2024. He suggests Ethereum could potentially reach $20,000. This would represent an impressive upturn of more than 780% from its current market value.
Analyzing Ethereum’s short-term price movements, Credible Crypto notes that, although Ethereum established a local bottom earlier in the week at around $2,100, there is still potential for another corrective dip towards $2,160. Following this, he anticipates that Ethereum might then test its resistance level at $2,400.
He said: “Think that last liquidation wick marked our bottom but at least in the short term think we may see a small move down and a bit more ranging before we are ready for the next leg up.”
Credible Crypto’s optimistic outlook on Ethereum (ETH) is further supported also by data from Santiment . This indicates a significant accumulation of Ethereum by whales.
According to Santiment, the top 150 self-custody wallets currently hold a record-breaking 56.25 million ETH. In contrast, exchange wallets have seen a decrease in Ethereum holdings, now containing 9.46 million ETH, marking the lowest level since June 2018.
This trend of accumulation is evident in both exchange and non-exchange wallets. Santiment reports that the top 150 whales collectively own an all-time high of 65.71 million ETH.