Key Points
- Ethereum (ETH) could potentially rally by 17% based on historical price performance.
- If Ethereum fails to hold its current support level, it may drop to $2,600.
Ethereum’s historical price performance indicates a potential 17% upside rally in the near future.
However, if Ethereum fails to maintain its current support level, it could decrease to the $2,600 mark.
Market Conditions and Ethereum Accumulation
The cryptocurrency market has been experiencing a downward trend recently. Despite this, some investors and ‘whales’ have been accumulating significant amounts of Ethereum due to its significant price drop.
A recent post by on-chain analytic firm Lookonchain revealed that a highly accurate trader accumulated 6,424 Ethereum, valued at $19.8 million.
Smart Trading Amid Price Decline
Lookonchain reports that this trader took two trading days to accumulate Ethereum during a recent price drop. On August 2nd, when Ethereum experienced a major breakdown of its crucial support level of $3,130, the trader purchased 4,000 Ethereum worth $12.58 million.
On August 3rd, when Ethereum further declined and hit its next support level of $2,900, the trader added another 2,424 Ethereum worth $7.22 million.
Since November 21, 2024, this trader has made seven trades, each time making a significant profit. According to Lookonchain data, the trader has made a profit of over $38 million from these trades.
Despite this accumulation, Ethereum’s price continued to fall. At the time of writing, it was trading near $2,880, experiencing a price decline of 3.5% in the last 24 hours.
Historical Price Momentum and Future Levels
Historical price momentum suggests that whenever Ethereum hits the support level of $2,900, it usually experiences a significant upside rally. Traders and investors have similar expectations this time around.
Since April 2024, Ethereum has hit this support level four times, and each time, investors have seen an average of 15%-17% upside move.
If history repeats itself, Ethereum could potentially soar by 17% and reach the $3,400 mark. However, if Ethereum fails to hold this crucial support level, it could potentially fall to the $2,600 and $2,500 levels.
