New Ethereum whales arrive, but will their accumulation send ETH above $3.5K?

Ether (ETH) demonstrated a strong 29% impulse move last week as it broke above $3,000 for the first time since August. However, its bullish momentum has slowed despite Bitcoin (BTC) moving by 13% over the past few days.

Ethereum 1-week chart. Source: TradingView

While Ethereum has been up by only 0.66% since Nov. 11, data suggests that whales are evaluating its current price point as a window of opportunity for long-term accumulation.

“Fresh” Ethereum whale buys $23.44 million in ETH

Throughout Q3, Whale activity was rampant in the Ethereum ecosystem as multiple wallets aggressively dumped ETH on the market. With ETH prices surging by 23% in Q4, a new whale address has now surfaced.

Lookonchain, an onchain wallet tracker, highlighted in an X post that a “fresh” whale wallet had accumulated 7,389.5 ETH, or $23.44 million in value, over the past 24 hours.

This particular wallet became active on Nov. 9, and since then, it has bought over 18,000 ETH at an average price of $3,201, currently valued at $57.8 million.

Ethereum whale wallet data. Source: etherscan.io

Interestingly, the wallet only holds Ethereum and $19.3 million in Tether (USDT). Hence, the whale might accumulate more Ethereum if favorable price dips are presented.

Previously, Cointelegraph reported that an ETH whale from 2016 had cashed in on an 80,000% return, making over $30 million from an initial investment of $38,000. The onchain address moved 11,000 ETH in a single transaction when ETH prices were around $2,777.

Similarly, another ETH address that amassed 23,743 ETH at an average price of $11 between August 2017 and November 2018 moved 6,250 ETH, or $20 million, to the Kraken exchange on Nov. 14.

Ethereum ICO whales have a record of selling their ETH holdings on Kraken based on past activity.

Related: Ethereum holder turns $38K into $30M after 8 years

Ethereum faces “stiff resistance” at $3,500

While Bitcoin has undergone price discovery this week, Ethereum is yet to break above its previous all-time high (ATH) from 2021. Hence, the altcoin continues to witness overhead resistance, which retains macro structure importance concerning its current all-time high at $4,878.

In line with that, Eddie, an independent trader, mentioned that ETH’s recent price rally to $3,450 perfectly tapped the 0.618 Fibonacci line drawn per its all-time high and 2022 lows. The Fibonacci level also accompanied a supply zone between $3,550-$3,050.

Ethereum 1-day chart analysis by Eddie. Source: X.com

The trader added,

“$ETH facing stiff resistance at the start of the next significant supply zone 3100-3500, expect more price work to get through it.”

From a technical standpoint, Ethereum has closed its previous couple of daily candles on a drawdown, and it is currently looking primed to retest the fair value gap (FVG) between $3,072 and $2,987 formed on the daily chart.

Ethereum 1-day chart. Source: TradingView

The aforementioned range hosts an order block and support from the 50-EMA level in the four-hour chart. Hence, there is a likelihood that ETH might bounce from the $3,000 range if the altcoin regains bullish momentum from its first area of interest.

Related: Ethereum enters ‘scarcity mode,’ paving the way for ETH rally to $6K — Analyst

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.