- Ethereum whales accumulate 6,102 ETH tokens worth $23.84 million.
- ETH is up 2.07% in the last 24 hours.
Over the past month, Ethereum (ETH) has seen a strong upward movement. So, since hitting a low of $2,355, the altcoin has managed to reach $4,000 twice. However, the altcoin failed to see a sustained move above $4,000.
Source:
As ETH struggles to rise above this level, whales have entered the market. Stakeholders view whale activity as a necessary recipe for Ethereum’s sustained growth.
Popular crypto analyst Ali Martinez observed that Ethereum whales are accumulating more since ETH surpassed $3,330.
Whales hoard ETH
According to Lookonchain, institutions are continually accumulating Ethereum. So, two wallets from the same creator withdrew 4,502 ETH tokens worth $17.54 million from Binance. After removing these tokens from exchanges, addresses staked them with KelpDAO.
Second, another whale purchased 1,600 ETH tokens worth $6.3 million on exchanges in the last 48 hours, according to Lookonchain.
The increased accumulation of altcoins by whales shows their confidence in the future value of the market. As such, institutions strive to accumulate ETH before it rises higher on its price charts.
Source: In the block
We can see this increased demand and accumulation of Ethereum as the net flow to exchange net flow ratio of large holders has decreased to 0.58%.
Such a sharp decline indicates a decline in whale selling pressure. Retail traders are left to exchange activity which often coincides with accumulation among whales, as observed above.
Often, an accumulation surge can precede a price increase, as purchases by large holders create higher buying pressure, leading to supply compression. These conditions could allow the altcoin to make more gains.
Can Ethereum see a sustained rally above $4,000?
Usually, increased accumulation of whales leads to a positive impact on the price of an asset. This impact has stood out for Ethereum over the past month.
In fact, at press time, Ethereum was trading at $3,968. This represents an increase of 2.07% over the past day. Likewise, the altcoin gained on the weekly and monthly charts, increasing by 1.48% and 27.33%, respectively.
This upward trend has allowed most long-term holders to make profits. As such, long-term holder profit margins have increased over the past day as ETH reclaimed $4,000 resistance.
Source: Santiment
With their growing profitability, they continue to hold ETH hoping for more gains, a sign of increased market confidence. This shows that whales and long-term holders are optimistic.
Read Ethereum (ETH) Price Prediction 2024-25
Therefore, such positive sentiments, if prevalent, could see ETH rise further. If so, Ethereum will recover $400 where it faced multiple rejections. A breakout from here will propel ETH to $4,165.
Therefore, a correction will see ETH drop to $3,852.
