Ethereum (ETH-USD) is seeing some serious action lately. Whales—big Ether holders—have added over $1 billion worth of ETH in just two weeks, according to crypto analyst MAXPAIN. These addresses, holding between 1,000 to 10,000 ETH, scooped up 330,000 ETH since January 7, sparking speculation about a potential price rally. On-chain data reveals a similar pattern in April led to a 66% price surge, and analysts like Cold Blooded Shiller predict Ether could hit $5,000 by March.
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Layer-2 Solutions Set New Records
Ethereum’s layer-2 protocols, which make transactions faster and cheaper, are breaking records, with a transaction throughput of 29.64 million gas units per second, growthepie.xyz reports. Coinbase’s (COIN) BASE protocol is leading this charge, handling 67% of the traffic. While the scalability is impressive, analysts caution that sustained demand could eventually strain capacity.
Is $5,000 ETH a Dream or Reality?
The path to $5,000 isn’t without hurdles. Ethereum’s price needs to flip $4,100 from resistance to support before any serious rally can occur. According to Cointelegraph, traders like Jelle point to bullish setups, including an inverse head-and-shoulders pattern, as signals of optimism. Still, retail demand remains low compared to previous cycles, tempering expectations.
At the time of writing, Ethereum is sitting at $3,203.50.
