Ethereum (ETH) is showing a recovery trend, increasing 6% in the last week while it remains under the $4,000 mark despite numerous attempts to surpass this threshold.

ETH Longs Rise

Recent data from the on-chain analytics service, Lookonchain, highlights a notable increase in confidence among ETH investors, especially from prominent traders. A trader known as 0xc2a3 has executed three additional trades totaling $1.77 million, raising their overall profit to above $14.2 million with a notable 100% win rate.

Noteworthy actions include a reopening of a 5x long position involving 16,727 ETH, estimated at around $65 million. This was later expanded, with Lookonchain indicating that the trader now holds 33,270 ETH valued at approximately $131.24 million, together with a 4x leveraged $8.9 million Bitcoin position, contributing to a total realized profit of over $15.4 million.

In a similar vein, another trader called ‘Crypto Ape’ pointed out that an insider whale, known for a flawless investment record, has initiated a long position worth $47 million in ETH, alongside further queued orders totaling $84 million. This wave of substantial long investments suggests there may be bullish catalysts based on insider expectations.

Ethereum’s Next Major Move

After bouncing back from the $3,800 support level, crypto analyst Ted Pillows observed that Ethereum is approaching a significant resistance level between $4,000 and $4,100, where established sell walls may challenge the rally’s strength. In his assessment, if buyers succeed in breaking past this resistance, it could initiate a relief rally and lure in short-term traders seeking further gains.

Current market actions indicate a careful testing of recovery positions following previous drawdowns, as the importance of the $3,800 support is reiterated.

Related Insights:

• Insider OG Whale Back in Action: 3,003 BTC Transferred Amid Aggressive Shorting
• Ethereum Reclaims $4K, Poised For Explosive Breakout says Analysts
• Ethereum Price Calm Masks Quiet Accumulation – Big Players Are in No Rush to Sell

Furthermore, crypto analyst Michaël van de Poppe has stated that Ethereum is on the brink of reversing its downtrend, potentially outpacing Bitcoin. If his prediction holds true, this may signal the beginning of a considerable rally in altcoins, led by ETH. The optimistic view matches findings by Merlijn The Trader, whose analysis indicates that Ethereum is still classified within the ‘Still Cheap’ range on the Rainbow Chart. This model, known for identifying market phases historically, suggests ETH is undervalued compared to prior peak cycles.