New Ethereum whales have arrived, but will their stock send ETH over $3.5K?

Ether (ETH) showed a strong 29% momentum last week, breaking above $3,000 for the first time since August. However, Bitcoin (BTC) has moved 13% over the past few days, but its momentum has slowed.

Although Ethereum is only up 0.66% since November 11th, data suggests that whales view the current price point as a window of opportunity for a long-term rally.

A “fresh” Ethereum well buys $23.44 million in ETH

In Q3, as several wallets aggressively dumped ETH on the market, wave activity spread throughout the Ethereum ecosystem. With the price of ETH up 23% in Q4, a new whale address has just emerged.

Onchain wallet tracker Lookonchain revealed that a “hot” wallet on XPost has accumulated 7,389.5 ETH or $23.44 million in value in the past 24 hours.

This particular wallet became active on November 9, and since then, it has bought more than 18,000 ETH at an average price of $3,201, currently worth $57.8 million.

Surprisingly, the wallet only holds $19.3 million in Ethereum and Tether (USDT). Therefore, if suitable price levels are presented, the whale can accumulate more Ethereum.

Cointelegraph previously reported that since 2016, an ETH well has returned 80,000% and earned more than $30 million from an initial investment of $38,000. An onchain address moved 11,000 ETH per transaction when ETH prices hit $2,777.

Similarly, another ETH address that collected 23,743 ETH at an average price of $11 between August 2017 and November 2018 moved 6,250 ETH or $20 million to the Kraken exchange on November 14.

Ethereum ICO whales have a track record of selling their ETH holdings on Kraken based on past activity.

Related: Ethereum Holder Turns $38K Into $30M After 8 Years

Ethereum faces “strong resistance” at $3,500

Despite Bitcoin's price gains this week, Ethereum failed to break above its previous all-time high (ATH) of 2021. Thus, the altcoin continues to find resistance above its current all-time high of $4,878.

In line with this, Eddie, an independent trader, noted that ETH's recent price rally to $3,450 has nicely tapped the 0.618 Fibonacci line with its all-time high and 2022 low. The Fibonacci retracement was accompanied by a supply zone between $3,550-$3,050.

The businessman added:

“$ETH will face strong resistance at the start of the next critical supply zone 3100-3500, expect more price action to go through.”

From a technical point of view, Ethereum closed on the drawing of the previous two daily candles and looks set to retest the Fair Value Gap (FVG) formed between $3,072 and $2,987 on the daily chart.

The aforementioned range hosts an order block and support above the 50-EMA level on the four-hour chart. Therefore, there is a possibility that ETH may rise above the $3,000 range if the altcoin gains strength from the initial demand position.

RELATED: Ethereum Enters ‘Scarcity Mode', Paving Way for ETH Rally to $6K – Analyst

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.