Ethereum’s Breakout Potential: Is $3200 a Realistic Target?

As of the latest update, Ethereum was fluctuating at a crucial level on the daily chart
Optimism has returned to the market, leading to renewed activity from institutions and whales

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is once again positioned at pivotal levels. These levels hold particular importance for long-term investors. At the time of this writing, ETH was trading around the $2,700 mark – a vital resistance point on the daily chart.

The price ranges established in the previous month are now functioning as significant support and resistance areas. ETH is maintaining the previous month’s low as support while the midpoint between the prior month’s high and low acts as resistance.

With lingering optimism in market sentiment, there is potential for a breakout beyond the $2,700 resistance. Successful movement could enable ETH to target the $3,200 mark. However, market conditions remain volatile, and any sudden shift could affect this prediction.

Source: Hyblock Capital, TradingView

Surge in whale and institutional activity

Increased engagement from institutions and whales adds to the bullish sentiment for a higher ETH price. Notably, a dormant Ethereum whale recently sold off 12,979 ETH after four months, realizing a gain of $34.3 million.

This whale initially purchased ETH at a mere $7.07 each. To date, the total sales of 15,879 ETH resulted in a profit of $43.5 million.

Currently, this whale still retains 5,760 ETH, valued at about $15.5 million, indicating that significant investors are optimistic about Ethereum reaching the $3,200 target. This resurgence in whale activity serves as a strong indicator of ETH’s potential upward movement towards this target.

Source: SpotOnChain

At the same time, institutional transactions are also affecting the market landscape.

Recently, two major organizations have been liquidating ETH. Cumberland, a trading entity, transferred 11,800 ETH, approximately worth $31.88 million, to Coinbase. Meanwhile, ParaFi Capital withdrew 5,134 ETH from Lido and moved it to Coinbase Prime.

Despite the selling pressure observed, the surge in whale activity indicates many investors remain positive regarding Ethereum’s price trajectory.

Rise in ETH addresses with balances

Another encouraging sign for ETH is the increase in the total number of addresses holding balances. The uptick in wallet addresses suggests a growing influx of investors into the Ethereum ecosystem.

This movement is typically viewed as a bullish indicator, signaling elevated adoption of Ethereum due to its practical applications in decentralized finance (DeFi) and scalability enhancements.

Source: IntoTheBlock

The rising number of wallet addresses can be seen as another bullish indicator supporting the $3,200 price target for ETH in the last quarter of the year, which is historically characterized by bullish trends in the cryptocurrency market.

Fear and Greed Index settles at neutral

The market’s growing optimism is mirrored in the Fear and Greed Index, which has recently landed at a neutral rating of 50. This marks a positive change following an extended period of extreme fear, particularly in the wake of the market crash on August 5.

As the market shows signs of recovery, an influx of traders may gravitate towards ETH, making this an opportune moment to acquire more ETH ahead of the expected bullish trend.

Historically, entering the market during neutral sentiment phases often provides better opportunities than waiting for periods of extreme greed, which typically signal market peaks.