Why Is Ethereum Price Up Today? Is Strong Whale Demand Fueling the Surge?

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After actively acting on the resistance level around $2,650 for the better part of last week, the Ethereum (ETH) price has successfully broken out and signaled the onset of its rising trend. Ethereum price established a robust support range between $2,223 and $2,320 since the August 5 crypto crash.

The large-cap altcoin, with a fully diluted valuation of about $328 billion and a daily average traded volume of around $16.2 billion, pumped over 3 percent in the past 24 hours to retest a crucial resistance level of around $2,748. 

Ethereum’s price managed to outshine Bitcoin (BTC) for the first time in several weeks, which teased $69k again since July.

Factors that Continue to Favor Ethereum Over Bitcoin Ahead

Anticipated Altseason Soon

#Alts cap

Keep very simple pic.twitter.com/NlbPI73aBP

— Mikybull Crypto (@MikybullCrypto) October 20, 2024

After an impressive rally since early 2023, Bitcoin price action is expected to be outpaced by the altcoin market in the coming months. The crypto cash rotation has already begun favoring Ethereum, which is globally accepted as a digital asset, due to its deep liquidity and rising utility in the web3 space.

More investors are betting on a major altseason pump, catalyzed by ETH price retest to its all-time high.

Rising Demand for Whale Investors

The Ethereum market has registered palpable growth in the past few weeks, fueled by rising demand from whale investors. Last week, the US spot Ether ETFs, led by BlackRock’s ETHA, registered the third week of net cash inflow since the July approval by the US SEC.

After a $78.89 million cash inflow last week, the US spot Ether ETFs have now reduced the cumulative total net cash inflow to about negative $479.9 million.

Favoring Technical Analysis (TA)

From a technical analysis perspective, Ethereum’s price is well-positioned for an impressive rebound in the near term. According to veteran trader Peter Brandt, Ethereum price has successfully broken out of a daily falling trend, which has been forming through a symmetrical triangular pattern.

Brandt also noted that Ether’s price, against the US dollar, has successfully rebounded from a potential head and shoulders (H&S) pattern in the daily time frame. Most importantly, Ether’s price against Bitcoin has rebounded from a double bottom, coupled with a rising divergence on the Relative Strength Index (RSI).