After a week of sideways trading, Bitcoin Ethereum is poised to break out with rising buying pressure. The price is up over 16% and has increased by 500 points in value. Purchasing pressure is increasing exponentially. According to Santiment data, a new wave of whales has joined the Ethereum network. Over a month’s time, 35 new addresses have joined, representing a 3% increase. Among these new whales, there are only a handful of market participants with more than one million Ethereum.
Throughout the past week, Ethereum has risen over 16%, gaining over 500 points in market value. If it continues to rally, the upside may push prices even higher. According to on-chain data, the number of addresses holding $10,000 to 100,000 ETH has skyrocketed. In fact, the number of new whales has increased by nearly 35 percent since Mar. 14. As of this writing, there are approximately 35 million ETH, totaling $3 billion.
Although the market continues to expect the Fed to raise interest rates, rising interest rates hurt cryptocurrencies and growth stocks. Meanwhile, falling interest rates hurt bond prices, which move in the opposite direction. Moreover, there are fears that the Russian central bank may ban cryptocurrencies. On the other hand, the price of Ethereum has hit a four-month high near $4,800 in November but has fallen nearly 25 percent since then.
A strong bullish sentiment is likely to persist over the next few days. The first crypto is poised to break out with rising buying pressure, while Ethereum is in a consolidation pattern. The on-chain data indicates that interest is increasing in both markets. These two are expected to be in a breakout zone soon. Further upward pressure could push both cryptocurrencies to their highs. These currencies have been on a winning streak for the past two weeks.
On the hourly chart, Bitcoin and Ethereum have broken out in a bullish trend. The price is now on a two-week streak, despite forming a bear flag in higher time frames. However, this rally could end abruptly, as the underlying value of both cryptos is approaching $11,300. This means that both coins are in a bearish consolidation phase. Nevertheless, the trend is gaining momentum on the downside.
The price of Ethereum is facing a decisive moment. It is in a symmetrical triangle, meaning that it has the potential to move up to $45,000 or back down to $3,000. A bullish breakout is likely, but the ‘bull flag’ signal is not a ‘bull flag’. Rather, it is a ‘bull’s eye setup. A bull flag is formed by a large jump above the upper trendline.