By Key Points
- Ethereum price prediction targets $2,900 as Bitcoin dominance weakens.
- Whale accumulation boosts ETH’s bullish momentum.
- Ethereum has seen a 16% price surge in the past 7 days.
- The $2,800-$2,900 price zone presents key resistance levels.
Ethereum price prediction is back in the spotlight as ETH bulls are making strong moves, taking advantage of Bitcoin’s declining dominance.
The surge in ETH’s value is largely driven by large investors, or “whales,” who have been actively accumulating more Ethereum. This activity is fueling the bullish momentum and setting the stage for a potential price target of $2,900.
#Ethereum to $2900: Bulls take advantage of declining #BTC dominance https://t.co/o3fa0p6zzh
— AMBCrypto (@CryptoAmb) September 25, 2024
Bitcoin’s Decline Benefits Ethereum Price Prediction
A key factor in Ethereum’s price prediction is Bitcoin’s dominance (BTC.D) over the broader cryptocurrency market. When BTC.D is high, altcoins like Ethereum tend to struggle.
This year, Bitcoin’s dominance reached a year-to-date (YTD) peak of 58.59%, applying downward pressure on Ethereum’s price. However, a reversal in this trend has given ETH the breathing room it needs.
As Bitcoin’s dominance begins to wane, Ethereum’s price is seeing a sharp recovery. Over the past seven days, ETH has risen by 16%, signaling renewed bullish momentum.
The shift in liquidity from Bitcoin to altcoins suggests that investors are betting on Ethereum’s upside potential, particularly with whale accumulation backing the current rally.
Whale Accumulation Drives Bullish Ethereum Price Prediction
Whale activity plays a significant role in Ethereum’s price prediction. These large holders have been adding to their ETH balances steadily since early September.
As of September 1st, whale addresses held 58.12 million ETH, but by September 23rd, this number had grown to 58.48 million ETH, an increase of roughly 360,000 coins.
This rise in whale balances, equivalent to nearly $950 million in current market value, demonstrates strong confidence in Ethereum’s upside potential.
In fact, ETH inflows to large addresses spiked notably, rising from 101,740 coins on September 14 to 675,000 ETH just five days later. These inflows continued to climb, with an additional surge from 96,000 ETH on September 22 to over 515,000 ETH on September 23.
While outflows have also been significant, the inflows indicate sustained demand from whales, which supports the current bullish Ethereum price prediction.
Can Ethereum Hit the $2,900 Target?
As the market gains momentum, many traders and analysts are closely watching the $2,800 to $2,900 range for Ethereum’s price prediction.
This zone has previously acted as both support and resistance, meaning that it could present a significant challenge for ETH to break through.
At the time of writing, Ethereum’s Relative Strength Index (RSI) was hovering around 60.03, suggesting that the cryptocurrency is not yet overbought. This gives ETH room to climb higher before reaching a critical overbought level where traders may start taking profits.
If Ethereum can sustain its momentum, the Ethereum price prediction of reaching $2,900 is within reach.
However, traders should be cautious as this level may introduce heavier sell pressure, especially as whales and other large holders may opt to secure profits.
What’s Next for Ethereum?
As Bitcoin’s dominance continues to decline, Ethereum’s price prediction remains optimistic, bolstered by strong whale activity and overall market sentiment.
However, the road to $2,900 may not be entirely smooth, with potential resistance and profit-taking along the way.
In the short term, Ethereum appears poised to test the $2,900 level, but whether it can maintain this upward trajectory depends on how well it can handle upcoming resistance and market conditions.
Keep an eye on whale activity and BTC dominance to gauge whether this bullish momentum will persist.
