Ethereum Eyes New Highs: ETH-M2 Chart Signals Bullish Momentum
Ethereum Nears All-Time High Amid Bullish Market Signals
Ethereum's market is gaining traction as traders and analysts observe strong ETH-M2 chart signals, indicating a potential surge into uncharted territory. Institutional buying and significant whale accumulation are also fueling the upward momentum.
Over the past month, ETH has experienced a 60% surge, reaching $4,770 and nearing its 2021 peak. This rapid ascent is supported by rising institutional interest, corporate holdings, and substantial activity from large wallets.
Technical Signals and Market Confidence
Crypto trader Ted Pillows noted that each review of the ETH-M2 chart increased his ETH holdings, reflecting broader market optimism following recent technical breakouts. Analyst Crypto Caesar suggests that a clean break above the previous all-time high could propel Ethereum into "uncharted territory." The current rally places ETH within 2.5% of its record, with traders closely monitoring for a confirmed breakout, a critical level for further market momentum.
Large-Scale Accumulation by Whales
Blockchain tracker Lookonchain reported that a newly created wallet withdrew 3,606 ETH (worth $17.06 million) and 1.41 million WLD tokens (valued at $1.55 million) in a single transaction. Such transactions suggest active accumulation by high-value market participants, reinforcing the bullish outlook.
Fundstrat Capital’s Thomas Lee views ETH as the biggest macro trade for the next 10 to 15 years, citing AI-driven token economies and Wall Street's increasing adoption of blockchain as primary drivers. He further noted that most stablecoin and institutional blockchain projects are being built on Ethereum.
Ethereum's network currently holds 55% of the $25 billion real-world asset tokenization sector and maintains an estimated 55% share of the stablecoin market, solidifying its leading position in blockchain-based financial infrastructure.
Potential Risks and Cautionary Signals
Glassnode data reveals that 98% of ETH holders are currently in profit, marking a two-year high. Historically, readings above 95% often precede market pullbacks as holders capitalize on profits. In the past, Ethereum has experienced corrections exceeding 10%, with one decline surpassing 40%.
The recent rally has been partly driven by Digital Asset Treasury companies' heavy buying since May. While this has supported prices, analysts caution that a coordinated sell-off by these large holders could trigger short-term volatility. Monitoring the "Percent Supply in Profit" metric can help identify potential market bottoms following a correction.