Ethereum (ETH) has recently shown a rise of 10% in value over the week, yet it still lingers below its all-time high of nearly $5,000. Three significant indicators suggest that it might reach or even exceed this benchmark in the near future.

The Bullish Scenario

Notably, the prominent X user Ali Martinez reported that large investors have gathered 800,000 ETH in the past week. This acquisition represents over $3.6 billion, and this group now retains 31.17 million tokens, equating to 25% of the total circulating supply of the asset.

Many users have pointed out that such a massive buying wave is seldom coincidental and may indicate that knowledgeable investors are preparing for a potential upward movement. Some suggest that these whales might have insider information that justifies their recent activities.

Economically, the accumulation of such a vast quantity of tokens limits the available supply in the market. This reduced availability, paired with steady or increasing demand, naturally sets the stage for a potential increase in price.

Spot ETH ETF Inflows, Source: SoSoValue

Another factor contributing to this optimistic outlook is the growing demand for spot ETH ETFs, which have drawn in over $1 billion since the month’s start. This surge suggests that institutional investors are progressively broadening their exposure to Ethereum.

Currently, the quantity of ETH held on cryptocurrency exchanges has dropped to a nine-year low of around 16.1 million coins. This decline indicates a shift in investor behavior, favoring self-custody instead of cashing out for profits, leading to diminished selling pressure.

Something for the Bears

Despite the overall excitement within the cryptocurrency community, some aspects hint at a potential price correction. Earlier today, Ali Martinez noted that the TD Sequential indicator has signaled a sell point just above $4,500. A rejection around that price could potentially lead to a decline to $4,100 or lower, down to $3,780.