Ethereum is currently experiencing significant market activity, particularly with large holders, known as whales, accumulating substantial amounts of ETH. In just two weeks, these investors have acquired over $1 billion in ETH, leading to speculation about potential price movements.

Whales, who hold between 1,000 to 10,000 ETH, have purchased a total of 330,000 ETH since January 7. Historical trends suggest that similar accumulation patterns have previously resulted in notable price increases, such as a 66% rise observed in April. Some forecasts even predict that Ethereum could reach $5,000 by March.

In addition to market activity, Ethereum’s layer-2 protocols are achieving record transaction throughput. For instance, Coinbase’s BASE protocol is currently handling 67% of the traffic. While this scalability is impressive, experts warn that sustained demand may eventually challenge the system’s capacity. Currently, Ethereum’s price stands at $3,203.50, needing to surpass the $4,100 threshold to establish a strong support level for any significant upward movement. Despite some positive technical indicators, retail demand remains lower than in previous market cycles, which may limit expectations for a rapid price increase.

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