Ethereum Whales Are Buying ETH After Upgrade Announcement! Is a Bullish Momentum Ahead?

Ethereum (ETH) is showing significant activity in the market following its latest upgrade announcement, sparking interest among traders and investors alike. Ethereum whales are buying ETH after this upgrade announcement.

From the progressive actions of these large ETH owners, could this signal an impending bullish breakout for Ethereum? Let's dive into the details.

Ethereum Upgrade Announcement and Its Impact

On September 19, 2024, Ethereum developers made waves in the crypto community with their latest announcement: the much-anticipated Pectra Upgrade would be split into two phases. This decision came after extensive internal discussions aimed at minimizing potential risks and ensuring a smoother transition. 

The Ethereum community has been eagerly awaiting this update, which promises significant improvements in the blockchain’s scalability and efficiency.

The first phase of the upgrade, scheduled for early 2025, will bring about notable enhancements, including the highly anticipated EIP-7702, which will allow traditional wallets to temporarily function as smart wallets. 

This will simplify transactions for users unfamiliar with the intricacies of smart contracts, improving both accessibility and security for Ethereum's user base.

The second phase is expected to be more complex, including upgrades such as PeerDAS (Peer Data Availability Sampling) and the EVM Object Format (EOF), aimed at improving data availability and smart contract compatibility. 

Although the second phase introduces more technical risks, the long-term benefits of these updates are substantial. The announcement has injected optimism into the Ethereum ecosystem, with many believing that the successful rollout of Pectra could address longstanding concerns.

Ethereum Whales Piling Up ETH

In the wake of the upgrade announcement, Ethereum whales—wallets holding large amounts of ETH—have been actively buying up tokens, a signal that big players are betting on Ethereum’s future growth. 

On September 19, 2024, a whale purchased 2,117.7 ETH worth around $5.17 million, according to data shared by on-chain analytic firms. 

The whale’s massive buy-in occurred just as Ethereum saw a price surge, further fueling speculation about an incoming bull run.

This isn’t the first time whales have made moves. Earlier, on September 18, 2024, another whale bought a staggering 5,660 ETH valued at $13.1 million at an average price of $2,316. 

Such whale activity often precedes major price movements and can be a strong indicator of market sentiment turning bullish.

Historically, when whales accumulate ETH in large volumes, it signals rising confidence in Ethereum’s price performance. 

With the Pectra Upgrade laying a strong foundation for improved functionality and scaling, many whales seem to believe that Ethereum’s price is poised for a significant upward movement. 

This influx of whale buying suggests that major investors expect ETH to rally in the near future, potentially reaching new highs as the network upgrade approaches.

Ethereum Price Analysis: Is $3,200 Within Reach?

Source: Market Bitrue

At the time of writing this article on September 20, Ethereum price was at $2,546 with a gain of +4.6% in 24 hours. As can be seen from the graph taken from the Bitrue market above, the ETH RSI line shows the number 73. This means, that the ETH buying trend exceeds the selling trend.

The rally seems to be supported by a 16% increase in trading volume, suggesting growing participation from both traders and institutional investors.

Source: TradingView

Analysts are now closely watching Ethereum’s price trajectory as it moves toward key resistance levels. Some experts are predicting that if Ethereum sustains its upward momentum and breaks through current resistance, it could reach up to $3,200 in the coming weeks. 

This optimistic forecast is based on the observation that ETH is breaking out of a long-term downtrend, signaling the possibility of a new bullish cycle. However, for this rally to materialize, Ethereum must avoid falling back into the buying zone between $2,346 and $2,121. 

If ETH re-enters this zone and breaks it, the bullish narrative could be invalidated, and the price could correct. Despite the positive outlook, traders are advised to maintain risk management strategies, as market volatility remains a factor, and crypto prices can be unpredictable.

Conclusion

The combination of whale activity and the promising Pectra Upgrade has set the stage for a potential bullish breakout for Ethereum. 

With large investors placing significant bets on ETH and the price nearing crucial resistance levels, many believe that Ethereum could soon reach $3,200. 

However, the market remains volatile, and traders should keep a close eye on key support and resistance zones to navigate potential risks.

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Frequently Asked Questions

Q1: What is the Pectra Upgrade?
The Pectra Upgrade is Ethereum’s upcoming network update, split into two phases, aimed at improving wallet functionality and enhancing data availability.

Q2: Why are Ethereum whales buying ETH now?
Whales are accumulating ETH following the upgrade announcement, signaling bullish market sentiment and anticipation of future price increases.

Q3: Could Ethereum reach $3,200?
Ethereum has the potential to reach $3,200 if it can break through key resistance levels and maintain its bullish momentum, especially after the network upgrades.

Investor Caution 

While the crypto hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.

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