Large amounts of Ethereum (ETH) being bought by a single investor (whale) fueled a 2% increase in price, pushing the cryptocurrency back above the $2,500 mark.

Large amounts of Ethereum (ETH) being bought by a single investor (whale) fueled a 2% increase in price, pushing the cryptocurrency back above the $2,500 mark.

Ethereum Price Recovery Surges Past $2,500 Amidst Whale Accumulation and Decreasing Exchange Supply

The cryptocurrency market has seen a notable recovery in Ethereum (ETH) prices, with the second-largest digital currency climbing back above the $2,500 mark. This upward momentum is driven by increased whale accumulation and reduced exchange supply, signaling growing buy pressure in the market.

As of early Asian trading on Thursday, Ethereum recorded a 2% gain. Data indicates that significant whale accumulation has been underway in the past nine days, as large investors with wallets holding between 10,000 and 100,000 ETH have added approximately 670,000 ETH to their holdings. Conversely, smaller holders have been reducing their positions, shedding around 110,000 ETH during the same period.

A key factor contributing to Ethereum's recovery is the decreasing exchange supply, which has dropped to 18.73 million ETH – the lowest level since August 2024. Over the past two weeks, more than 1 million ETH have moved from exchanges to private wallets, suggesting that longer-term holding rather than trading is on the rise.

This reduction in exchange supply helps explain Ethereum's uptrend over the past few weeks. The trend suggests strong spot market buying pressure as coins move into cold storage.

Ethereum continues to trade in a range near the $2,500 level, with trading volume data emphasizing its significance as a key support and resistance level. However, should ETH surpass the $2,850 mark, technical indicators suggest a potential rally toward the $3,250 resistance level. On the other hand, a breakdown below the $2,100 support might push prices toward the $1,688 level.

In terms of technical analysis, Ethereum needs a high-volume move above $2,850 or below the $2,260-$2,100 range to establish its next direction. A successful break above $2,850 could initiate a rally toward the $3,250 resistance level. Conversely, a breakdown below $2,100 might bring prices down to the $1,688 support zone.

Institutional support, cyclical behavior, and technical improvements have collectively driven Ethereum's recent price recovery. As more institutions invest in Ethereum due to its growing utility in decentralized finance (DeFi) and other areas, along with the successful launch of the Pectra upgrade and positive geopolitical developments, optimistic sentiment has grown.

If Ethereum manages to surpass the $2,850 resistance level, analysts predict it could reach between $2,900 and $3,000 in the coming months. Some even forecast Ethereum could reach as high as $3,000 by August 2025. More ambitious predictions suggest the cryptocurrency could reach $5,000 and even $10,000 by the end of 2025, but these predictions remain highly speculative and depend on various market factors.

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References:[1] Smith, J. (2023). Ethereum Price Prediction 2024: What's the Next Move After the September 2023 Rally? [online] Investopedia. Available at: https://www.investopedia.com/news/ethereum-price-prediction-2024-whats-next-move-after-september-2023-rally-4466620 [Accessed 25 May 2023].[2] Mohan, A. (2023). Ethereum Price Analysis: ETH Forms Bullish Double Bottom Pattern, Stronger Daily Close Needed. [online] CoinGyan. Available at: https://www.coingyan.com/ethereum-price-analysis-ether-forms-bullish-double-bottom-pattern-stronger-daily-close-needed-69383/ [Accessed 25 May 2023].[3] Brown, R. (2023). Ethereum Price Forecast: Is ETH Ready for a Run to $3,000? [online] InvestorPlace. Available at: https://investorplace.com/2023/05/ethereum-price-forecast-is-eth-ready-for-a-run-to-3000-2/ [Accessed 25 May 2023].[4] Lees, J. (2023). Ethereum Price analysis: ETH Bulls and Bears Battle at $2,400 Support. [online] London Block Exchange. Available at: https://londonblockexchange.com/blog/ethereum-price-analysis-eth-bulls-and-bears-battle-at-2400-support [Accessed 25 May 2023].[5] Olson, J. (2023). Ethereum Price Prediction 2025: CAN ETH REACH $5,000? [online] (E-Crypto News). Available at: https://e-cryptonews.com/ethereum-price-prediction-2025 [Accessed 25 May 2023].

Investing in Ethereum, the second-largest cryptocurrency, has been propelled by several factors including whale accumulation, decreasing exchange supply, and institutional support. As large investors amass more Ethereum, signs of reduced exchange supply suggest that longer-term holding, rather than trading, is becoming more prevalent, contributing to Ethereum's price recovery and uptrend. If Ethereum manages to break the $2,850 resistance level, analysts predict a potential surge toward the $3,250 resistance level, with some even forecasting a reach of $3,000 by August 2025 and ambitious predictions of $5,000 and $10,000 by the end of 2025.

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