- Small ETH holders have recently sold more ETH, and whales are absorbing these sales.
- ETH continued its upward trend.
Ethereum (ETH) has seen an extraordinary move recently, with whale investors purchasing over 280,000 ETH, worth around $1 billion, in over five days.
This accumulation has sparked significant speculation about Ethereum’s future trajectory, especially with the asset trading near $3,700.
CCombined with changing exchange flows and an uptick in on-chain activity, all eyes are on whether Ethereum can maintain its bullish momentum or face a correction.
Ethereum Whale Activity Fuels Optimism
The sudden increase in whale accumulation, illustrated by on-chain data, highlights the growing confidence of large investors.
This rise coincides with Ethereum’s recent price rally and its breakout of the $3,500 resistance level.
Source: Santiment
Santiment’s chart analysis highlights the constant addition of ETH by wallets holding between 100,000 and 1,000,000 ETH.
The charts show that the whales went into accumulation mode at the start of the month. This move could indicate long-term bullish sentiment.
Net foreign exchange flows reflect market behavior
A key metric supporting the bullish scenario is the net flow of Ethereum to and from exchanges. Analysis of Glassnode data revealed a significant fluctuation over the past few weeks.
However, ETH outflows from exchanges have increased, suggesting traders are moving their holdings.
Source: Glassnode
The evolution of exchange flows shows that the whale movement has had an impact, balancing the retail sales of holders.
This trend indicates a reduced likelihood of immediate selling pressure, which could further stabilize Ethereum’s price.
Challenges for Ethereum to Maintain Momentum
Despite these bullish signals, risks remain. Ethereum price is approaching overbought levels, which could trigger a short-term correction. At the time of writing, ETH is trading at around $3,709, with a slight increase.
Additionally, an impending Golden Cross was observed with the 50 moving average (MA) moving closer to surpassing the 200 MA.
Source: TradingView
Read Ethereum (ETH) Price Prediction 2024-25
Ethereum’s recent whale accumulation and favorable on-chain metrics have paved the way for potential gains. However, caution is required given the technical indicators of overbought assets and the possibilities of profit taking.
Ethereum appears poised for an extended rally, provided overall market conditions remain favorable.
