Ethereum (ETH) experienced a significant price surge, climbing 7% within 24 hours to approximately $2,350 on March 3 and briefly surpassing $2,550. This rally is attributed to several factors, including a strategic announcement by former President Trump and increased whale accumulation.
Firstly, Trump’s announcement about the inclusion of ETH in the United States’ newly conceptualized Crypto Strategic Reserve has fueled market enthusiasm. Trump directed that significant cryptocurrencies, including XRP, Solana, Cardano, Bitcoin, and Ethereum, form the core of this strategic reserve. This move is perceived by analysts as potentially providing regulatory clarity and enhancing institutional acceptance of Ethereum. Consequently, bullish projections have emerged, with some analysts predicting a potential rally to $4,000 by April.
Additionally, there has been a marked increase in ETH accumulation by large holders, known as whales. Data from Glassnode reveals that entities holding between 1,000 to 10,000 ETH have been consistently increasing their holdings since January. Even larger entities with over 10,000 ETH have ramped up their accumulation amid recent market trends, signaling strong confidence in Ethereum’s long-term potential.
Ether’s price rebound has also been supported by technical factors. After testing its multimonth accumulation zone, which has historically led to short-term price rebounds, ETH managed to stay above the critical support range of $2,100 to $2,500. This range includes the 200-week exponential moving average, currently positioned around $2,300. With prices rebounding from this support, there is potential for ETH to challenge the 50-week EMA near $2,910. Success in surpassing this level could propel ETH toward the $4,000 mark. However, failure to break through may lead to a pullback, potentially forming a bearish head-and-shoulders pattern, which could see the price target around $1,360.
Overall, the combination of strategic announcements, whale activity, and supportive technical indicators has contributed to the current upswing in Ethereum’s market performance.
