Analyst Calls Ethers Surge To $7,000 Inevitable As Whales Scoop $3.7 Billion ETH

Ethereum (ETH) traded subdued over the weekend, closing a week marked by subdued price action.

Notably, ETHs performance has sharply contrasted with the rally of other cryptocurrencies, leading some to jokingly call it a stablecoin due to its repeated failure to breach critical resistance levels, like $3,160.

While assets such as XRP and Solana have surged, with impressive gains of 42.7% and 34.4% to their market caps over the past month, Ethereum has fallen by 2.2% in the past month.

This underperformance has led to growing frustration among traders, especially as the broader cryptocurrency market saw significant gains in recent months, partly fueled by optimism surrounding Donald Trumps re-election campaign.

Earlier this week, Brianq, an analyst at Santiment, suggested that shifting investor sentiment is to blame for Ethereums lackluster performance.

The crowd has been slowly but surely turning against Ethereum in favor of more exciting and outperforming assets like XRP and Solana, he wrote.

According to him, this shift in sentiment has created a negative feedback loop, where Ethereums poor performance fosters pessimism, further dragging prices down. Social media discussions, often driven by emotions rather than data, have only worsened the situation.

Ethereum has also faced criticism for concerns around centralization risks, particularly the concentration of staking power among major entities like Coinbase, Binance, and Lido Finance. Adding to Ethereums woes, co-founder Vitalik Buterin has faced backlash for selling large amounts of ETH. Notably, Buterin sold 90,000 ETH worth over $100 million in May 2021 and another $12 million in March 2023, citing personal expenses and funding for Ethereum-related projects. These sales have fueled concerns about market stability.

On Saturday, CryptoQuant analysts warned that Ethereum could be headed for a horror decline, with 64% of traders currently operating at a loss. They pointed to internal challenges within the Ethereum Foundation and the assets inability to find a stable bottom amid its ongoing pullback, which could lead to a free fall. The analysts also highlighted a significant 84% drop in spot market trading volumes, from $52 billion in January 2021 to just $8 billion today, signaling a sharp decline in demand and increased caution among traders.

Despite the ongoing price decline, some promising signs exist for Ethereums future. On Saturday, popular crypto analyst Ali Martinez noted that these whales had purchased over 1.14 million ETH in just the past 48 hours, valued at approximately $3.7 billion.

Earlier on Sunday, the pundit highlighted that Ethereum has consistently surpassed the 3.2 MVRV Pricing Band during previous bullish cycles, which currently sits at $6,770.

Meanwhile, other analysts also remain optimistic about Ethereums potential. Ethereum $7,000 is inevitable, tweeted Titan of Crypto, sharing a weekly chart pattern of a broadening triangle. Elsewhere, analyst Virtual Bacon was even more bullish, predicting that ETH could reach $14,000 by year-end, driven by factors like Federal Reserve liquidity, pro-crypto policies, and ETF inflows.

ETH traded at $3,331 at press time, reflecting a 0.35% drop in the past 24 hours.

Text source: ZyCrypto

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