Ethereum Price Outlook: Supply Crunch and Whale Accumulation Spark Speculation on a Massive Rally

**Ethereum (ETH) Price: Supply Crunch Could Trigger Massive Rally To $5,200**

A recent surge in whale accumulation and a supply crunch could propel the Ethereum (ETH) price towards $5,200. This comes as institutional investors increasingly seek exposure to the world’s second-largest cryptocurrency by market capitalization.

**Ethereum Whales Accumulate $560 Million Worth of ETH**

In just four days, Ethereum whales have accumulated over 150,000 ETH worth a staggering $560 million through major purchases. According to data from Lookonchain, one whale alone has amassed 105,977 ETH valued at $397 million, while another wallet purchased 32,640 ETH for $122.18 million.

**Supply Shortage Creates Favorable Conditions**

Bitwise CIO Matt Hougan highlights the Ethereum supply dynamics, noting that institutional entities could add a staggering $20 billion worth of ETH in the next year. This would be seven times more than expected new ETH issuance. As such, it appears Ethereum’s supply shortage will continue to fuel price appreciation.

**Technical Analysis Supports $5,200 Rally**

Traders and analysts are now looking at technical patterns for confirmation. The parabolic SAR indicator has flipped bullish on the weekly timeframe, suggesting a breakout from current resistance levels could unlock massive gains. If ETH can clear the $4,100 resistance zone, it may open the door to a rally towards $5,200.

**ETH Price Traps Near Resistance**

ETH currently trades near $3,620 following its 160% three-month surge. The price now faces stiff resistance at $3,800-$4,100. A decisive weekly close above this level could confirm a breakout and set the stage for the massive rally to $5,200.

**Current Support Levels Under Threat**

In the event of a pullback, Ethereum would likely find support at $3,650 before potentially dropping to $2,300 or lower if sellers gain control.

As the world’s second-largest cryptocurrency by market capitalization continues to attract institutional investors, analysts expect further price appreciation. With whales accumulating over $560 million worth of ETH and supply shortages driving bullish momentum, a massive rally towards $5,200 appears increasingly likely.

**Will Ethereum (ETH) Price Continue Its Upward Trend?**

In conclusion, the recent accumulation by Ethereum whales and supply crunch could trigger a significant rally to $5,200. As institutional demand continues to fuel price appreciation, it is essential for investors to closely monitor market conditions and adapt their strategies accordingly.

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Source: coincentral.com