Key Points
- An Ethereum whale has withdrawn 5160 tokens, equivalent to $20 million, from Binance.
- Ethereum’s price is showing signs of recovery, with large holders buying the dip.
Ethereum’s Market Performance
In the past month, Ethereum [ETH] has been following an upward trajectory. From a local low of $2,355, the altcoin soared to $4096. However, a correction occurred after reaching this point, causing the price to drop to $3501. At the time of writing, Ethereum was trading at $3,899, marking a 0.6% decline on the daily charts.
This market pullback provided a buying opportunity, particularly for large holders who have been purchasing the dip.
Whale Activity and Market Confidence
On-chain tracker Lookonchain reported an increase in Ethereum accumulation by whales following the altcoin’s price drop. One notable transaction involved a whale who created a new wallet and withdrew 5160 ETH tokens, worth $20 million, from Binance.
This accumulation of Ethereum by whales indicates a high level of confidence among large holders, especially as long-term holders’ profits continue to rise. This confidence is reflected in Ethereum’s MVRV long/short difference, which has been steadily increasing over the past week, from 5.17% to 8.56%. This increase signals both market confidence and rising profitability.
Ethereum’s Bullish Sentiment
AMBCrypto’s analysis suggests that Ethereum is currently experiencing a strong bullish sentiment, with buying pressure coming from large holders. Consequently, Ethereum investors are accumulating the asset, as indicated by a rising outflow volume.
According to IntoTheBlock, the outflow volume from exchanges has surged from $1.56 billion to $3.89 billion over the past week. This indicates that more investors are moving their Ethereum tokens into private wallets rather than exchanges. This trend is further supported by a declining exchange supply ratio, which has dropped from 0.1468 to 0.143. Such a drop implies that more investors are bullish and are keeping their assets off exchanges.
Lastly, this bullish sentiment among whales is evidenced by a rising large holder netflow. Over the past day, this has surged from negative 7.16k to 48.96k. When netflow experiences such a significant surge, it suggests that there’s more capital inflow into an asset than outflows.
With these positive sentiments among large holders, Ethereum is likely to see further recovery in its price charts. If these sentiments persist, Ethereum could reclaim the $4000 mark in the short term. However, if buyers fail to retake the market, Ethereum’s price could drop to $3713.
