Key Points
- Whales have been accumulating Ethereum (ETH), with two transactions totaling 6102 ETH, worth $23.84 million.
- Increased whale activity could lead to a sustained rally for Ethereum above the $4k mark.
Ethereum has seen significant growth in the past month, with the cryptocurrency hitting the $4k mark twice since reaching a low of $2355. However, Ethereum has struggled to maintain a steady position above $4k.
Whale Activity in Ethereum Market
In the midst of Ethereum’s struggle to surpass the $4k mark, whales have entered the market. Crypto analyst Ali Martinez noted an increase in whale activity since Ethereum broke the $3,330 mark.
According to Lookonchain, institutional investors continue to accumulate Ethereum. Two wallets from the same creator withdrew 4502 ETH tokens, worth $17.54 million, from Binance. These tokens were then staked with KelpDAO. Another whale purchased 1600 ETH tokens, valued at $6.3 million, from exchanges in the past 48 hours.
Impact of Whale Accumulation on Ethereum’s Value
The increased accumulation of Ethereum by whales indicates their confidence in the future value of the cryptocurrency. With institutions scrambling to accumulate Ethereum, the Large Holders Netflow to Exchange Netflow Ratio has declined to 0.58%, indicating a drop in selling pressure from whales.
This surge in accumulation could lead to a price increase as large holders buying creates a higher buying pressure resulting in a supply squeeze. These conditions could set Ethereum up for more gains.
Increased whale accumulation often has a positive impact on an asset’s price. This has been evident with Ethereum over the past month. At the time of writing, Ethereum was trading at $3968, marking a 2.07% increase over the past day. The cryptocurrency has also seen gains on weekly and monthly charts, hiking by 1.48% and 27.33% respectively.
This uptrend has led to increased profitability for long-term holders, with profit margins spiking as Ethereum reclaimed the $4k resistance. With their rising profitability, these long-term holders continue to hold onto Ethereum, signaling increased market confidence.
If these positive sentiments continue, Ethereum could see further growth, potentially reclaiming the $400 mark where it has previously faced multiple rejections. A breakout from here could propel Ethereum to $4165. If a correction occurs, Ethereum could drop to $3852.
