Ethereum (ETH) is making a strong recovery following the recent Bybit hack that caused a significant price drop. Despite the setback, ETH has managed to bounce back, although it is still down by around 18% over the last month, showcasing ongoing market volatility.
The Relative Strength Index (RSI) for ETH has surged to 58.6 from its low of 39.2 during the sell-off, indicating a resurgence in buying interest. This uptick in RSI signals a positive shift in market sentiment and potential price gains if the momentum continues.
ETH RSI Rebounds From Recent Decline
ETH's RSI now stands at 58.6, a considerable rise from the 39.2 level reached post the Bybit hack that impacted its value.
The recovery in RSI underscores the increased buying momentum that ETH has experienced since the sharp decline.
This upward trend in RSI implies a comeback in buying pressure, resulting in a stabilization of Ethereum's price and a potential path for further growth if the positive momentum endures.
ETH's RSI. Source: TradingView.
RSI, a momentum indicator ranging from 0 to 100, is pivotal in gauging the speed and magnitude of price movements, with key levels at 30 and 70.
An RSI below 30 is commonly viewed as oversold, indicating possible buying opportunities, while an RSI surpassing 70 is seen as overbought, suggesting a potential price adjustment.
Presently, ETH's RSI at 58.6 is positioned amidst a balanced zone, slightly favoring bullish momentum. This suggests room for Ethereum to advance before entering overbought territory, encouraging further price appreciation fueled by consistent buying interest.
Accumulation of Ethereum Whales Post Bybit Hack
The number of Ethereum whales - addresses holding a minimum of 1,000 ETH - has steadily risen in the past month, climbing from 5,680 on January 25 to 5,828 on February 22.
This surge marks the highest figure since December 2023, implying a renewed enthusiasm and accumulation among major holders. The escalating count of whale addresses hints at institutional investors or high-net-worth individuals strategically building positions, potentially anticipating future price growth, particularly following the events on February 21 and February 22 triggered by the Bybit hack.
This uptick in accumulation may serve as a robust foundation for ETH's value surge.
ETH Whales. Source: Glassnode.
Monitoring Ethereum whales is critical as their transactions can notably impact the market dynamics.
When whales accumulate, it shrinks the circulating supply, potentially propelling prices upwards as demand meets reduced availability. Conversely, whale sell-offs can exert substantial downward pressure on prices.
Presently, the rise in whale addresses reveals a growing confidence and bullish sentiment among large investors.
Though currently at the highest level since December 2023, this figure remains relatively lower when compared to historical data, hinting at further room for accumulation. Sustaining this trend may pave the way for a continued upward trajectory in ETH value as demand outpaces supply.
Anticipating a Potential Rise Above $2,900 for Ethereum
Ethereum's EMA lines indicate a potential formation of a golden cross signifying a bullish trend and promising upward momentum.
In the event of this occurrence, Ethereum might first test price levels near its long-term line (blue line) at approximately $2,876. Surpassing this resistance could set the stage for a rally towards $3,020.
With sustained momentum, ETH could even target levels as high as $3,442.
ETH Price Analysis. Source: TradingView.
However, Ethereum has encountered obstacles in reclaiming levels above $2,900 in recent instances, hinting at possible resistance and market caution.
Failure to breakthrough may lead to a downturn, testing the $2,551 support level. Breaching this support could trigger a sharper decline, possibly dropping to $2,159.