In recent weeks, Ethereum (ETH) has experienced a notable surge in accumulation by large investors, commonly referred to as whales. Data reveals that these entities have acquired more than 700,000 ETH, valued at approximately $2.45 billion.
Ethereum Whale Activity and Market Impact
This significant buying activity underscores a strong belief in Ethereum’s long-term potential, despite recent price fluctuations. The increased ETH holdings among whales suggest a strategic move to capitalize on the recent dip in Ethereum’s market value. Such accumulation could potentially stabilize the cryptocurrency’s price amid ongoing market volatility. Despite a temporary drop below $3,400, Ethereum has shown resilience, rebounding due to heightened whale activity.
Price Trends and Indicators
Since late May, Ethereum’s price trend has exhibited a bearish pattern, characterized by a series of lower highs and lower lows. The Chaikin Money Flow indicator reflects a decline in money inflows, suggesting a cautious outlook. Conversely, the Relative Strength Index (RSI) has shown increased bullish momentum, indicating potential price recovery attempts.
On-Chain Metrics and Future Projections
On-chain metrics present mixed signals for Ethereum. Network Growth has declined, indicating reduced interest from new investors, while overall trading velocity has slowed down, signaling decreased market activity.
Looking ahead, Ethereum’s price trajectory remains uncertain. The cryptocurrency faces resistance around the $3,607.30 level, which it may challenge if bullish momentum persists. However, a decisive breakthrough to new highs would require substantial bullish support.