Ethereum whales have accumulated nearly 400,000 Ethereum between Sunday and Monday.
The increase in whale interest comes with expectations of a 25 basis point cut in federal reserve interest rates on Wednesday.
Ethereum could test resistance at $3,470, but there are risks of rejection near the 50-day exponential moving average.
Ethereum ($ETH ) rose by 6% on Tuesday following increased whale buying activity and President Donald Trump's comments regarding the next Fed chair.
Whales resume buying pressure amid expectations of interest rate cuts from the Fed
Ethereum whales stepped on the gas ahead of the Federal Open Market Committee (FOMC) meeting on Wednesday. With the Fed expected to cut interest rates by 25 basis points, sentiment among whales is improving.
Whales holding between 10,000 and 100,000 Ethereum increased their collective holdings by about 400,000 Ethereum between Sunday and Monday, according to CryptoQuant data. This sharply contrasts with mid-last week to the weekend when they distributed around 220,000 Ethereum.
Ethereum balance by holder value. Source: CryptoQuant
The resumption of whale interest coincided with President Trump's statements that the next Federal Reserve chair is expected to cut interest rates immediately. Trump's comments stirred bullish sentiment across major cryptocurrencies.
Thus, American investors are again leading the buying pressure. The ETH Premium Index on Coinbase, a measure of American investor interest, has remained positive over the past week after being negative for nearly a month.
On the derivatives side, open interest (OI) for Ethereum surged by 440,000 Ethereum to 12.48 million Ethereum on Tuesday following Trump's statements, according to Coinglass data. However, it remains far from pre-October 10 crash levels.
Open interest for Ethereum. Source: Coinglass
The surge resulted in $120.1 million in liquidations over the past 24 hours, led by $105 million in liquidations of short positions.
Ethereum price forecast: Ethereum could test $3470 but there are risks of rejection at the 50-day exponential moving average.
Ethereum surpassed short-term resistance at $3250, achieving a 6% gain on Tuesday, but faces the possibility of rejection near the 50-day exponential moving average.
On the bullish side, Ethereum could rise towards $3800 if it breaks above the 50-day exponential moving average and the resistance of $3470.
The daily chart for Ethereum/Tether
On the bearish side, $ETH could find support around $3100 if it sees rejection near $3470. If the bulls fail to defend $3100, support at $2850 may hold.
The Relative Strength Index (RSI) has crossed the neutral level while the Stochastic Oscillator is in the overbought territory. Overbought conditions in the Stochastic could lead to a short-term pullback.
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