Key takeaways
Why is Ethereum attracting interest from whales?
Whales have accumulated over $417 million worth of ETH despite the market downturn, a sign of strong long-term confidence.
How do reserves and sentiment shape Ethereum’s outlook?
Falling foreign exchange reserves and improving weighted sentiment signal growing accumulation pressure.
Since mid-October, Ethereum (ETH) showed renewed investor interest after whales accumulated 104,336 ETH worth $417 million from Kraken and BitGo wallets.
This massive influx, led by Bitmine, coincided with Tom Lee’s prediction that Ethereum could hit $10,000 by the end of the year.
Additionally, the timing of this accumulation indicates that wealthy investors remain confident in Ethereum’s long-term potential.
Therefore, optimism about whales could serve as a key catalyst for a major rally if technical conditions align favorably.
Will Ethereum soon be able to break out of its descending channel?
Ethereum’s daily chart revealed a well-defined descending channel, with the price bouncing off the lower trendline near $3,676 at press time.
The recent rise towards $4,060 suggests that bullish momentum is gradually returning.
A sustained move above $4,269 could trigger a breakout towards $4,950, marking the end of the multi-week correction phase.
However, if the rejection occurs at the median resistance level, Ethereum could briefly retest the $3,800 demand zone before resuming its upward movement.
Source: TradingView
Decreasing reserves = increasing accumulation pressure
Ethereum’s foreign exchange reserves fell 4.26% to $62.44 billion at press time. This meant more tokens were leaving exchanges for cold storage.
Such a move often reflects growing investor confidence, as traders withdraw their holdings from sell-ready environments.
This supply contraction could amplify price sensitivity to buying pressure, particularly when combined with large-scale whale purchases.
Moreover, recent accumulation suggests that institutional investors are positioning themselves for a medium-term rebound rather than short-term speculation.
Source: CryptoQuant
Case of Improving Investor Sentiment
Sentiment data showed that Ethereum’s social dominance climbed to 7.11%, while weighted sentiment improved to -0.483 from deeper lows, at the time of writing. This combination indicates a slow but significant recovery in market confidence.
Community engagement has intensified following Bitmine’s massive ETH acquisition, suggesting renewed attention from retail traders.
However, sentiment remained mixed as macroeconomic uncertainty persists, making sustained optimism crucial for further price advances.
As discussions about Ethereum fundamentals increase, network confidence could strengthen enough to support a sustainable breakout above $4,200 in the near term.
Source: Santiment
Can a whale’s conviction jump-start Ethereum’s next rally?
The growing accumulation of Ethereum whales, dwindling foreign exchange reserves, and improving sentiment collectively strengthen the bullish outlook.
If Ethereum breaks above the $4,269 resistance, it could confirm further momentum towards $4,950 in the coming weeks. Overall, Ethereum’s current setup indicates that a decisive breakout could mark the start of its next major rally phase.
