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At the time of writing, both Bitcoin and Ethereum have reached new milestones on the charts, with the two cryptocurrencies predicted to reach even higher levels in the coming weeks. In particular, in terms of market activity, the past month has been quite an impressive year for both coins.
Since the beginning of the month, Bitcoin has increased by more than 14-15 percent, while Ethereum has increased by an incredible 36 percent. What if BTC hits $65,000 and ETH reaches $2,500? So, what now? Is there space for potential price exploration, or are both coins on their way through another price correction?
Santiment data highlighted some of the primary drivers behind this restored bullish momentum. According to the data, there has been a significant increase in activity from the market’s whale accounts. Santiment emphasised how Bitcoin has had a number of instances where there have been very large surges of transactions totalling more than $100,000.
In the case of Ethereum, though such transactions above $100,000 have been comparatively rare, there seems to have been a gradual increase in the number of whale accounts involved over the past week.
While whales joining the markets for the two largest cryptocurrencies with a prominently bullish stance can be quite positive and can even support the price with its expectations, it can also make the market quite competitive and even contribute to short-term price corrections. Price thresholds above a recent ATH are still vulnerable to corrections, as shown by previous instances where BTC surpassed main levels.
However, investor trust in BTC’s long-term potential has aided and encouraged the coin to secure good bouncebacks. The recent drop to the $52k level and subsequent rebound to values near $60k is a case in point.
Furthermore, according to Glassnode info, the number of unspent transaction outputs (UTXOs) in benefit (7d MA) has recently reached an all-time high of 121,531,015.327.
In comparison, the Puell Multiple, which takes the daily issuance value of Bitcoins (in USD) and splits it by the 365-day moving average of daily issuance value, reached a 1-month low of 2.640. The last time such a low was seen, Bitcoin’s price skyrocketed.
BTC has also seen a drastic increase in trading volume over the last few days, implying that the stock is set to retest the prized $65k-range.
This, though, places Ethereum at an important crossroads. If the coin’s upward trend and optimistic ambitions are unaffected, ETH’s high association with Bitcoin leaves its fortunes tightly bound to those of Bitcoin. If there isn’t as much action from whales as there is for Bitcoin, the coin’s post-ATH market discovery might be greater.
However, given the general trend in the altcoin industry, ETH cannot be expected to be resistant to a price correction until it crosses $2.5k if Bitcoin’s price experiences revived bearish sentiment.