Ethereum Set for Potential 17% Surge: Historical Data Points to Upward Momentum

The cryptocurrency market has been on a downward trend recently, prompting some large investors to consider accumulating Ethereum (ETH) following its notable price drop.

A recent post by on-chain analytic firm Lookonchain highlighted a smart trader who acquired 6,424 ETH valued at $19.8 million with 100% accuracy during a recent price decline.

This trader strategically accumulated ETH over two trading days amidst the market downturn. On August 2nd, when ETH broke its crucial support level of $3,130, the trader purchased 4,000 ETH worth $12.58 million. Subsequently, on August 3rd, as ETH declined further to the $2,900 support level, an additional 2,424 ETH were bought for $7.22 million.

Since November 21, 2024, this trader has executed seven trades, amassing over $38 million in profits. Despite this accumulation, ETH’s price continued to decline, settling near $2,880 at the time of the report, representing a 3.5% decrease in the last 24 hours and reaching a monthly low of $2,861. The trading volume for ETH also decreased by 30%, indicating reduced participation from traders and investors.

Historically, when ETH approaches the $2,900 support level, it tends to experience significant upward movements. Traders and investors are anticipating a similar rally this time, with potential for a 17% surge to reach $3,400 if historical patterns repeat. However, failing to maintain the crucial support level could lead to a drop to $2,600 or even $2,500.

ETH has revisited the $2,900 support level four times since April 2024, with each instance resulting in an average upside move of 15%-17%. This historical data suggests a potential for a substantial rally if past trends hold true.

In conclusion, the recent accumulation of ETH by a smart trader amid the price decline indicates confidence in the cryptocurrency’s future potential. Traders and investors are closely monitoring the support levels and historical price patterns for ETH, anticipating a possible upward rally in the near future.