Ethereum Price May Breakout To $10K As Institutions Load Up

Key Insights:

• Ethereum accumulation addresses reached all-time highs despite ETH price consolidation below 2021 peaks.
• Total value staked in ETH rose sharply after June, indicating increased long-term holder confidence.
• Chart analyst CryptoELITES identified two fakeouts and predicted a breakout toward $10,000.

Ethereum price has garnered institutional interest. Accumulation wallets have reached a new peak in token circulation and staking measures.

This indicated increased investor trust. Furthermore, technical analysts speculated that Ethereum is likely to surpass $10,000 soon.

Accumulation Wallets Hold More Ethereum Than Ever Recorded

Ethereum price has yet to reach its 2021 levels. However, on-chain data indicated that accumulation addresses had gradually accrued their positions. These accumulation addresses are specified as those that have no circulating credits.

However, they tend to relate to institutional group possibilities in the long-standing holding choices. According to CryptoQuant, the ETH balance in these addresses has reached its highest level.

Large-scale investors are steadily increasing their ETH holdings. This is happening even though Ethereum hasn’t seen major gains.

A CryptoQuant chart shows a growing gap between the Ethereum price and accumulation wallet balances. This trend has been noticeable since the beginning of 2023.

While the market has traded sideways or slightly downward, accumulation behavior has intensified. This indicated a potential preparatory phase before an Ethereum price shift.

Ethereum Staking Activity Surged After June

More so, the total value of ETH staked on the network is another critical metric indicating investor positioning. CryptoQuant data showed that staked Ethereum has experienced a steep increase beginning in early June.

Subsequently, this was accompanied by relative Ethereum price stability. Also, it preceded several months of stable expansion of participation in staking across validator nodes.

The increase in staking reflected a shift in behavior toward long-term holding and yield generation, rather than short-term speculative trading. Staking requires locking up tokens for extended periods.

This reduces the available circulating supply and supports bullish setups during low-volatility phases. More so, the chart data confirmed that this upward curve in staking has continued into July. It suggests continued confidence among long-term holders.

Institutional Demand May Fuel the Next Leg

Besides, the accumulation and staking build-up intensified with large-scale institutional activity. The CryptoQuant data indicated that tokens entered wallets previously serving custodians and high-value investment arms.

This conformed to the patterns witnessed before ETH rallies during preceding cycles. The price action may pierce past resistance levels created on the upper limit of the triangle.

This could generate some buying pressure among trend-following investors. Coupled with less liquidity regarding staking and locked tokens, the market setup may be ready to swing slightly upwards.

Ethereum Price May Have Formed a Bear Trap

Meanwhile, CryptoELITES shared a technical chart that gave a bigger picture of the Ethereum price trend over the last few years. In a recent post, the analyst identified two events as fakeouts, one upside and one downside.

Notably, the initial one happened when the Ethereum price managed to jump above its long-term downward trend. However, it quickly lost its speed. The second was a breakdown below the ascending support that promptly reversed.

These moves have formed a symmetrical triangle pattern, and the price consolidates near the triangle’s apex. Historically, such patterns often precede large price moves.

Furthermore, the current ETH price structure suggests that the recent dip may have been a bear trap. This clears weaker hands before a breakout. If the pattern completes, the chart labels this region as the “bottom,” with a projection pointing toward $10K.

The Ethereum price was above $2.5K when writing, up 5.8% in the last 7 days. Also, strong volume growth and steady support confirm bullish momentum.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.