- A potential liquidation of $410 million in ETH is on the horizon.
- Whale activity and Ethereum’s price movements are exhibiting bullish trends.
Ethereum [ETH] has displayed considerable strength over the last fortnight. As the leading altcoin by market capitalization and a central figure in the blockchain domain, Ethereum’s performance significantly influences the wider cryptocurrency market.
Data from Coinglass indicates that if Ethereum reaches the price level of $2,616.57, approximately $410.17 million in ETH could be liquidated. This is because prices typically move toward areas with high liquidity, allowing larger traders, often referred to as “whales,” to trade at more advantageous prices.
These heavily concentrated liquidation zones can often put pressure on either the buy or sell side. Given these variables, it appears increasingly probable that Ethereum will aim for the $2,616.57 level in its pursuit of liquidity in this area.
Source: Coinglass
Could this path towards major liquidation propel ETH to reach $3000 following its gains from the previous two weeks?
ETH price action demonstrates momentum
Analyzing Ethereum’s price trajectory, particularly in the ETH/USDT pair, unveils a consistent pattern on the daily time frame.
The Wave Trend Momentum Oscillator (WTMO) indicates that when the oscillator’s lows sync up, ETH typically enjoys rallies. This recurring behavior has led to price increases exceeding 76.38% in prior instances.
Presently, the liquidity zone above $2,616 represents a crucial focal point. The coin has been consistently climbing for two weeks, despite encountering four down days that were promptly reversed.
Source: TradingView
The price is aggressively nearing the $2,616 level. If it surpasses this threshold, the liquidation of orders situated above it could lead to even higher prices, potentially closing above $3,000.
Whale activity drives momentum
Whale activities within the Ethereum network have also surged, bolstering the likelihood of increased ETH prices.
Recently, a whale acquired 2,117.7 ETH valued at over $5.17 million following a rise in ETH prices. This whale opted to go long via circular borrowing.
Nonetheless, this same whale had previously incurred a loss of 6,078 ETH, amounting to $14.7 million, during the market crash on August 5. In the last six months, the whale lost $13 million while going long on ETH, achieving success in only one out of five attempts.
Source: Lookonchain
Despite this whale’s low success rate of just 20%, if the participation of more whales increases, it could help propel ETH beyond the $2,616 level and potentially higher shortly.
Future Outlook for Ethereum
Finally, Vitalik Buterin has shared insights on Ethereum’s prospects for 2024 in a video circulating on X, previously known as Twitter.
He stressed Ethereum’s commitment to scaling, improving usability, and enhancing zero-knowledge (ZK) solutions, which will significantly broaden the scope of on-chain applications.
Read Ethereum’s [ETH] Price Prediction for 2024–2025
Vitalik envisions that these technological advancements will pave the way for applications capable of accommodating billions of users.
With its robust foundation and increasing adoption, Ethereum is set to play a key role in shaping the future of blockchain technology.
