The Ethereum (ETH) price is picking up on Wednesday amid a broader rally across crypto and traditional asset markets following US CPI data, with some traders focusing on a mysterious wallet that just scooped up 29,000 ETH, and some are interpreting as a bullish signal.
According to various blockchain trackers, a new wallet has accumulated almost 29,000 ETH in the last 24 hours.
Traders closely monitor activity amongst crypto whales, because these big market players are often viewed as smart money.
That is to say, it is assumed that the sophisticated players moving big funds may have a market edge.
Traders will thus be hoping that this most recent accumulation by a mysterious new wallet could be a bottom signal.
The Ethereum price had been probing multi-month low support un the $2,800s in recent days.
A break below this key support zone could have opened the door to a run lower towards $2,700 and below.
But the mysterious new ETH whale maybe have timed the market perfectly.
The Ethereum price is up close to 5% and back above $3,000 on Wednesday as traders digest US CPI data.
Decent CPI reading –
US CPI (MoM – Apr): 0.3% vs. 0.4% exp. (prior 0.4%) Core (MoM): 0.3% vs. 0.3% exp. (prior 0.4%)
Growth stocks are like coiled springs, QT-taper and rate cuts later this year likely to trigger big rally.
— Puru Saxena (@saxena_puru) May 15, 2024
After inflation worried investors after rising in the first quarter of 2024, the latest data has eased fears that the Fed won’t be able to cut interest rates in 2024.
If data in the coming weeks continues to point towards renewed disinflation, macro could now be a tailwind.
That could suggest that the recent Ethereum price bottom under $3,000 could be a local low.
Ethereum Price Prediction – Where is ETH Headed Next
Its too early for the Ethereum bulls to start celebrating.
That’s because technical analysis suggests that the bulls are yet to regain control of the market.
The Ethereum price remains lodged below its 21DMA near $3,050, as well as its 50 and 100DMAs.
It also remains stuck within the confines of a downward trend channel.
A convincing push above $3,200 will be needed to send a bullish medium-term price signal.
The Ethereum price may have bounced, but will need to clear these resistance levels to re-assert a bullish trend. Source: TradingView
But Ether’s long-term prospects look strong. Yes, it faces regulatory uncertainty in the USA, with the SEC seemingly pushing to classify it as a security.
But its election year, and a new President could mean a new SEC/regulatory approach.
Moreover, the Ethereum blockchain is improving. The recent Dencun upgrade appears to have axed gas fees by as much as 4x.
High transaction fees were a key factor in diverting network activity to rival chains like Solana.
But Ethereum appears to be on the path of re-asserting its spot as the number one web3 chain.
As Fed rate cuts, spot ETF demand and post-halving tailwinds vault BTC above $100,000 in 2025, Ether could push on above $5,000.
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