Ethereum and Dogecoin prices have been on the rise over the past week, backed by large investors. Despite recent price dips, whales have continued their buying spree without slowing down. According to technical analyses, the ongoing influx of buyers is driving momentum toward price targets of $4,000 for Ethereum and $1 for Dogecoin. Here are the details…
Ethereum Price Could Reach Higher Levels with Whale Support
Ethereum has been attempting to build momentum toward the $4,000 level over the past week. With an RSI index at 63.6 and a recently formed “golden cross,” there are indications of upward potential. Furthermore, whale accumulation has reignited. The number of wallets holding at least 1,000 ETH, which had declined at the beginning of January, has started increasing again. Whether Ethereum can maintain its bullish momentum around critical support and resistance levels will determine its market direction.
Currently, Ethereum’s RSI stands at 63.6, down from the overbought threshold of 70 it surpassed between January 3-4. The RSI is an indicator that measures the speed and magnitude of price movements. Readings above 70 generally indicate overbought conditions and a higher risk of pullbacks.
The current RSI level of 63.6 suggests a neutral-to-bullish trend. A move toward 70 again could accelerate Ethereum’s momentum. However, a dip below 50 would signal a loss of bullish momentum.
Ethereum Whales Fuel Bullish Momentum
Whale activity has a significant impact on market trends. The number of addresses holding at least 1,000 ETH rose to 5,634 on December 25 but fell to 5,604 by January 2. Recently, this figure climbed back to 5,615, reflecting renewed interest from large investors. This uptick in whale accumulation acts as a confidence signal, driving prices upward. Conversely, a decline could indicate caution among major investors and heightened selling pressure in the market.
Meanwhile, as reported by Kriptokoin.com, there are concerns that the 51,000 ETH stolen by a hacker in 2016 may trigger additional selling pressure.
On January 4, Ethereum generated a “golden cross” signal, formed when the short-term EMA crosses above the long-term EMA. If this uptrend continues, supported by RSI levels and whale movements, ETH is expected to test the $3,827 resistance level. If it breaks through, the next bullish target would be $3,987.
On the downside, the $3,543 support level holds critical importance for Ethereum. Losing this level could trigger downward movement driven by increased selling pressure, potentially testing supports at $3,300, $3,200, or $3,096.
Whale Purchases Push Dogecoin Toward Higher Levels
DOGE is trading at $0.38 following its recent rise. While Shiba Inu gained 7%, Pepe surged by 10%, and Bonk grew by 14%, Dogecoin has risen partly due to a massive purchase on January 3. A total of 1.08 billion DOGE valued at approximately $413 million was bought by whales, signaling increased confidence in the market.
On the same day, 399.9 million DOGE (worth approximately $144.9 million) were transferred from Binance to an unknown wallet. According to blockchain analytics platform Blockchair, these transactions suggest a reduction in selling pressure, often considered a positive market signal.
Historically, January has been a strong month for DOGE performance, according to CryptoRank data. In January 2021, DOGE surged 711%, while in January 2014, it posted a 269% gain. Similarly, April has also been a strong period, with DOGE gaining 546% in April 2021 and 84.9% in April 2018.
Crypto analyst Thorn predicts that DOGE could see a 170% increase, reaching $1 and surpassing a $100 billion market cap. “DOGE will hit $1 by 2025, solidifying its place as the world’s largest and oldest meme coin,” Thorn stated. Open interest in DOGE has also surged by 50% in the last five days, climbing from $2 billion to $3 billion, according to CoinGlass. This growth indicates a significant increase in investor participation.
Additionally, Spirit Blockchain Capital announced plans to leverage its Dogecoin reserves for revenue generation. The company intends to integrate DOGE reserves into decentralized finance (DeFi) protocols, offering yield-focused products to both institutional and retail investors.