Search ForexCrunch
  • Ethereum hits another new all-time high as bulls anticipate gains above $2,000.
  • ETH whales are on a buying spree as the price rises to higher highs.
  • Increasing chatter around Ethereum might flash a bearish signal that could lead to a correction.

Ethereum has gradually followed in Bitcoin’s footsteps to achieve a new record high. The pioneer cryptocurrency is now exchanging hands above $1,800 while nurturing an uptrend toward $2,000. Bitcoin also hit a new all-time high on Monday at $47,625.

Ethereum begins the journey to highs above $2,000

The majority of the technical levels seem to have aligned in support of a breakout to price levels beyond $1,800. Although Ether is exchanging hands at $1,815, the Relative Strength Index (RSI) on the 4-hour chart suggests that the bullish leg has just started its mission.

The trend strength indicator is yet to hit overbought levels. Hence, ETH has room for growth in the short term. Additionally, the RSI has broken above the divergence line, in turn reinforcing the bullish outlook.

ETH/USD 4-hour chart

ETH/USD 4-hour chart

Ethereum’s network growth has started to recover following a slump, as shown in the chart developed by Santiment. The increase in the number of newly-created addresses occurred in tandem with the rally to $1,700 and the recent spike past $1,800. If ETH’s network growth continues to surge, we can expect the token price to hit the anticipated $2,000 level in the short-term.

Ethereum network growth

Ethereum network growth

Ethereum whales on a buying spree

The uptake of Ethereum by large volume holders continues to skyrocket amid the new all-time highs. In other words, Ethereum’s uptrend may be unstoppable, especially with buying pressure on the rise.

Santiment’s holder distribution highlights an increase in whales holding between 100,000 and 1 million ETH. The addresses in this range shot up from 154 on February 6 to 157 on February 8.

At the same time, addresses with 1 million to 10 million ETH rose by one to nine in the same period. Consistent growth in whales will have a ripple effect on the buying pressure, thereby supporting the breakout.

Ethereum network growth

Ethereum holder distribution

Looking at the other side of the fence

Ethereum’s social volume has also increased significantly. The chatter around the pioneer token is a reflection of the speculation for higher highs. However, an increased social media volume is not a bullish sign. Usually, the asset finds it challenging to sustain the uptrend, leading to a correction.

Ethereum social volume

Ethereum social volume

On the other hand, holding above critical $1,800 is key to ensuring that Ethereum stays on the trajectory to higher highs. However, a correction may come into the picture if this support is lost. Other critical anchor zones are $1,700, the 50 Simple Moving Average (SMA), and $1,500.