• Ethereum holders were still in the belief phase, suggesting a potential price rally could be on the cards.
• Whale activity and bullish technical patterns hint at a potential further rally.

Ethereum [ETH]  was approaching a major resistance level after crossing the 4k milestone.

Ethereum has recently caught attention as it approaches a major resistance level after surpassing the $4,000 milestone.

In the last two bull cycles, Ethereum experienced parabolic price surges when long-term holders transitioned into “greed mode”—a stage where market confidence reaches euphoric levels and profit-taking dominates.

However, the altcoin’s on-chain data suggests that Ethereum holders are currently in the early “belief phase,” indicating that the market could still be gearing up for its next major breakout.

The belief phase points to growing confidence among the long-term holders when prices consolidate and show signs of bullish momentum. 

Historically, this precedes the greed mode, in which aggressive buying and price rallies push Ethereum to new heights. This early stage presents a prime opportunity to enter the market before the next wave of significant price action.

What do Ethereum’s realized price bands have in store?

Ethereum’s realized price upper band is a critical marker for market behavior. Currently at $5,200, it marked the peak of ETH’s 2021 bull run.

Rising demand for Ethereum, coupled with increased adoption, suggests this upper band could climb higher.

If new buyers continue entering the market, ETH could surpass $5,000 in the coming months. The belief phase aligns with this possibility, as momentum steadily builds.

Ethereum whales are making moves

Ethereum whales are making significant moves. In the last 24 hours, large transactions have increased by 160%, as reported by IntoTheBlock.

Large whale activity often leads to strong market movements, as these major players accumulate during consolidation periods to prepare for the next big move.

This surge in whale activity aligns with the belief phase, suggesting that Ethereum’s big players are positioning themselves for a potential breakout.

Bullish flag pattern holds the key

Ethereum’s price action is forming a bullish flag pattern, a reliable signal of potential upward movement. ETH prices are testing a $4k key resistance level that has already been rejected twice in the past rally. 

A breakout above this level could trigger a rally, pushing the coin’s price closer to new highs.

Source: TradingView

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Read Ethereum’s [ETH] Price Prediction 2024-25

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Ethereum remains in the early phase of what could be an explosive move. Long-term holders, whale activity, and bullish patterns suggest a rally could be on the horizon.

For now, all eyes are on key resistance levels and the belief phase’s progression.

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