Risk on, BONK out? Is PEPE gearing up to lead the next cycle?
- Ethereum whales bought over 1 million ETH in 30 days, with $12.86M withdrawn from Kraken recently.
- Liquidation clusters at $2,607 and $2,716 could trigger volatility, with $811M in longs and $728M in shorts.
Ethereum [ETH] looked ready to break free from its weeks-long consolidation, as fresh buying interest and whale activity brought momentum back into play.
In fact, bullish sentiment has been building steadily, with on-chain and technical cues hinting at a potential rally.
Ethereum whales on buying spree
On the 28th of May, Ali Martinez revealed that whales are on a buying spree and have accumulated over 1 million ETH in the past 30 days.
This accumulation coincided with ETH’s sideways movement—a sign of strategic positioning rather than panic buying.
Source: X
Moreover, this accumulation or purchase of ETH is still ongoing, as revealed by blockchain transaction tracker Onchain Lens.
In a recent post, the whale tracker revealed that two newly created wallets withdrew 4,838 ETH, worth $12.86 million, from the cryptocurrency exchange Kraken.
This recent accumulation by these wallets is strengthening ETH’s price action.
Expert bullish view on Ethereum
As consolidation stretches past 17 days, a CryptoQuant Analyst shared a report noting that the altcoin showed a bullish flag pattern, which often leads to a massive rally once the altcoin breaks out of the pattern.
This formation, often a precursor to strong uptrends, has emerged while ETH remains above its 200-day Exponential Moving Average (EMA)—a key long-term support.
According to the expert, a breakout from this bullish pattern could lead to a rally toward $3,000–$3,500, potentially triggering a broader altcoin rally, as ETH often leads altcoin movements.
Ethereum price action and key levels
In light of this bold prediction, AMBCrypto closely analyzed ETH’s daily chart, and it appeared that the ongoing consolidation is occurring near a key resistance level of $2,700–$2,800.
This level has been rejected multiple times in the past and remains the immediate barrier.
For traders and investors, it’s important to understand that a breakout from consolidation alone may not be enough to start a rally.
For a sustained rally to occur, ETH must also break above this key resistance level, along with exiting the consolidation phase.
Source: TradingView
For ETH to confirm a breakout, it needs to close a daily candle above $2,870. If it successfully breaks this resistance level, it could see a 22% increase, potentially reaching $3,530.
However, if it fails to break above $2,870, consolidation may continue.
Liquidation pressure could shake things up
Given the current market sentiment, traders are over-leveraged at $2,607 on the lower side and $2,716 on the upper side.
At these levels, bulls and bears are in a close fight, with $811 million worth of long positions and $728 million worth of short positions built around these price points.
Source: CoinGlass
