Ethereum Rebounds to $3K: Whales Accumulate Before Breakout
Ether (ETH) rebounded 16% from a multimonth low, surpassing $3,000. Large investors, or “whales,” have been accumulating ETH, reaching record holdings amid declining retail participation. Whale accumulation typically occurs when prices are perceived as undervalued, suggesting expectation of a significant rally. ETH supply on centralized exchanges has dropped to a nine-year low, indicating reduced immediate sell pressure and possible forthcoming “supply shock.” Network activity remains strong: active addresses and new wallet creation have increased, signaling rising adoption. Monthly transaction counts have climbed, with throughput set to rise in January. Chart analysis shows ETH in an uptrend, with resistance at $3,200—breaking this level could propel the price toward $4,000 or even higher, with upside targets between $3,650 and $7,000 identified by some analysts. The 50-day EMA at $3,150 is considered critical for bulls. Overall, data points to a potential breakout and sustained bullish momentum for Ether if current trends persist.
