Ethereum’s (ETH) price action has been quite bullish from a broad perspective, as the second’s largest cryptocurrency by market capitalization is on track to refresh its all-time highs above $4,700.
However, the sustained move can have different explanations, given to the current non-fungible tokens (NFTs) hype and the hesitation of altcoins to recede too-much ground.
$1.8B ETH Wallet
Recently, Whale Alert, a well-known Twitter account that reports every single move from critical crypto whales (wallets with big amounts of digital assets), spotted an astonishing transaction of $1.8 billion worth of Ether.
The maneuver happened when the price hit an all-time high at around $4,663. So, to put it in a number of coins, the transaction was 229,766 ETH between unknown wallets.
— Whale Alert (@whale_alert) November 3, 2021
Other transactions were also performed from Binance, a major cryptocurrency exchange, to unknown wallets with amounts ranging from 10,000 to 25,000 ETH approximately.
Layer 2 Solution In Sight
On another front, the Ethereum Layer 2 solution recorded a significant growth as the blockchain’s fees increased amid the interest among the decentralized applications (dApps) towards Ethereum.
The network aims to reduce transaction fees and speed, and according to L2Beat, its total value locked surged by 20%, hitting the $4.39 billion figure. It’s not a secret that high gas fees in the Ethereum blockchain are a matter of concern for several crypto enthusiasts due to its increasing value that seems to be unstoppable.
However, at the same time, it helps to bolster the development of solutions like Layer 2.
Enough Room To Go Towards $5,000?
Moving to the technical analysis of ETH/USD, Ether seems to be poised to crack the all-time highs to reach the $5,000 milestone soon, as the sequence of higher highs and higher lows keep underway. Also, the 50-period simple moving average provides dynamic support across the board.
Moreover, the RSI indicator is hovering around the positive territory, suggesting there is plenty of room for the crypto to keep going up and reaching new highs on the road.
However, if ETH decides to break below the lows of the current month at around $4,200, the next hurdle lies at the 200 SMA around $3,900, followed by the $3,700 psychological level.