The central theses
- Ethereum is back above $ 4,000 after breaking out of a consolidation pattern.
- The bullish impulse coincides with an increase in the number of large Ether transactions.
- Network activity suggests that whales may be positioning themselves for higher highs.
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Ethereum is making headlines again after rising more than 18% in the past four days to test the $ 4,000 psychological level.
Ethereum breaks $ 4,000
The second largest cryptocurrency by market capitalization has resumed its upward trend after more than three weeks of consolidation.
Ether hit a series of higher lows throughout the stagnation, while the $ 3,350 resistance level prevented further advance. Such market behavior led to the formation of an ascending triangle on the ETH daily chart.
A sudden spike in buying pressure allowed Ethereum to break out of its consolidation pattern on August 31, rising more than 18% in the past four days to hit a $ 4,000 target.
The Fibonacci retracement indicator, measured from the May 12 high at $ 4,372 to the June 22 low at $ 1,700, suggests that further buying pressure offers more scope to push the asset higher. Further purchases, for example at the current price level, could result in ETH retesting its all-time high.
Whales are back
The presence of whales and institutional players on the network suggests that Ethereum could even target $ 5,000 if buy orders continue to pile up.
The number of large Ether transactions valued at $ 100,000 or more continues to grow. There were approximately 13,770 large transactions on September 1st, and this on-chain metric appears to be trending up.
Since whales have a disproportionate influence on prices due to their enormous populations, they can coordinate buying and selling activities in order to pump or dispose of tokens. This is the case that in recent years, every time the number of large Ether transactions increases, prices tend to follow suit.
As long as Ethereum can maintain its momentum and keep prices above $ 3,800, further gains can be expected.
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