Ethereum Price Today: $900M Buying Spree as Bitcoin Hits $100K

Ethereum (ETH) price today trades at $3,298.2 as of 11 PM after shooting up nearly 20% since January 13. This impressive recovery is due to Bitcoin’s climb to revisit the historic $100,000 level. Despite the bounce, ETH is down $3,454.3 after -4.26% in the last 24 hours as of May 16.

*Ethereum price updated as of 11 PM. 

Can Ethereum (ETH) Price Bounce Amid $900M Buying Spree?

Sanitment’s on-chain data shows that addresses holding between 1K and 10 K ETH increased their stack from 14.17 million to 14.44 million since January 7. Considering the current price of ETH, the 270,000 tokens accumulated by this cohort are valued at nearly $900 million.

Such a massive accumulation in a short period indicates demand. Hence, the recent rally will likely continue in the long run regardless of short-term volatility.

Falling Wedge Setup Forecasts Bullish Outlook

Since December 16, Ethereum (ETH) has set up three distinctive lower highs and two lower lows. Connecting a trendline to the swing points shows a Falling Wedge setup. This technical formation forecasts a 17% price rally that targets $4,000. The target is obtained by measuring the distance between the first swing high and low and adding it to the breakout point.

Strategic Support & Take-Profit Levels For ETH Traders

In this case, Ethereum will likely continue its descent toward the support zone, extending from $3,132 to $3,057. This zone is a good place to scoop more ETH. For short sellers, this area will be a good place to book profits. Hence, a dip into the $3,132 to $3,057 zone will lead to a massive spike in buying pressure from sidelined investors accumulating more ETH and short sellers closing their positions. As a result, ETH will trigger a volatile move to the upside that retests the upper limit of the Falling Wedge.

A decisive daily candlestick close above the Wedge’s upper trend line around $3,400 will confirm a breakout from the setup. In such a case, the key targets for short-term investors to book profits include $3,592, $3,975 and $4,069.

Invalidation Thesis

While the outlook for Ethereum looks bullish from a big-picture perspective, investors need to consider the possibility of a bearish outlook. Investors need to watch the $3,132 & $3,057 support levels. A breakdown of this zone will signal a weakness from buyers and potentially kickstart a steep 13% correction to $2,657. Beyond this ETH could also revisit the $2,341 barrier if the selling pressure is too high.