Ethereum is on the verge of regaining the $4,000 level, approaching its all-time highs. The second-largest cryptocurrency by market capitalization has faced skepticism this cycle, with some analysts predicting it will underperform compared to previous gains. However, Ethereum has surprised doubters by climbing steadily in recent weeks despite market uncertainty.

Key on-chain metrics from Glassnode reveal an crucial trend that could fuel further price gains: Ethereum whales have been accumulating aggressively since behind schedule November. This signals growing confidence among major bondholders as they brace for potential gains. Historically, whale accumulation has often preceded significant price movements, indicating the possibility of a breakout in the near future.

While the market remains divided on Ethereum’s trajectory, its ability to maintain its upward momentum near the $4,000 level will likely determine its performance in the coming weeks. Breaking this critical resistance could open the door to fresh highs and further solidify ETH’s role as a leader in the ongoing bull cycle.

Mega-Whale Ethereum balances are growing

Since November 5, Ethereum has experienced steady, if modest, growth, but it appears that the real fireworks for ETH have yet to ignite. As Bitcoin rapidly begins to discover prices and several altcoins perform above expectations, Ethereum investors are looking for clear signals of an impending bull run for the second-largest cryptocurrency.

On-chain key data shared by the top analyst Ali Martinez at X provides an intriguing insight into the current state of Ethereum. Martinez emphasizes that Ethereum whales – entities holding significant amounts of ETH – have been accumulating aggressively since the price broke above the $3,330 level.

This accumulation trend suggests that clever money is gearing up for a massive upward move in the coming months. Historically, whale accumulation has often been a precursor to forceful price increases, as these huge investors tend to anticipate major market changes ahead of retail traders.

However, the narrative is not entirely confident. While the whale cluster may signal confidence, it also raises concerns about a potential bull trap. These huge holders could quickly reposition themselves by shifting their ETH to other assets if market conditions change or if Bitcoin’s dominance stops the growth of altcoins. Such a move could surprise smaller investors and lead to pointed corrections.

In Ethereum’s case, holding above critical levels like $3,800 while breaking through key resistances could be the catalyst needed to trigger a true bull market. Until then, ETH will remain the favorite on the watchlist, balancing potential and uncertainty.

Price Testing Key Resistance

Ethereum (ETH) is trading at $3,950, having struggled to break above the key resistance level of $4,000 for several days. Despite this, the price remains resilient, signaling forceful market support. Clearing this level is necessary to confirm the continuation of the uptrend, as $4,000 is a psychological barrier and a key resistance zone for this asset.

If Ethereum does not break above $4,000, we can expect a return to lower demand zones around $3,500. This level has provided forceful support in recent weeks, providing a cushion during periods of increased selling pressure. A pullback to this area could allow for renewed buying momentum, setting the stage for another push higher.

However, recent market dynamics suggest that Ethereum may be poised for a significant move higher. Bitcoin’s surge in price discovery and rising optimism around altcoins have created a bullish environment. As whales continue to accumulate ETH, as highlighted by on-chain data, market participants are increasingly confident in Ethereum’s ability to retest and surpass its all-time highs.

Featured image from Dall-E, chart from TradingView