Throughout the previous month, Ethereum [ETH] has been on an upward trajectory. After touching a recent low of $2,355, the altcoin has surged to reach $4096.
Nevertheless, following this peak, Ethereum underwent a correction, pulling back to $3501. At the time of writing, Ethereum was exchanging hands at $3,899, reflecting a 0.6% decrease on daily charts.
This market correction presented a buying opportunity, particularly for significant holders, with whales seizing the chance to buy the dip.
Accumulation of ETH by Whales
Information from On-chain tracker Lookonchain reveals that whales are amassing ETH post-price declines. In a recent incident, a whale established a new wallet and withdrew 5160 ETH tokens valued at $20 million from Binance.
The accumulation of ETH by whales highlights the confidence of large holders, especially as profits for long-term holders continue to rise.
The Ethereum MVRV long/short difference has been progressively increasing over the past week, rising from 5.17% to 8.56%. This surge indicates growing market confidence and profitability.
Analysis of ETH Charts
According to CryptoCrypto’s evaluation, Ethereum is presently witnessing a strong bullish trend fueled by buying pressure from large holders.
Investors in Ethereum have shifted towards accumulating the asset, evident in the rising outflow volume. IntoTheBlock data indicates a spike in outflow volume from exchanges, escalating from $1.56 billion to $3.89 billion over the past week. This suggests a greater number of investors are transferring their ETH tokens to private wallets instead of keeping them on exchanges.
This trend is further supported by a decrease in the exchange supply ratio, falling from 0.1468 to 0.143. Such a decline signifies a bullish sentiment among investors who are opting to store their assets off exchanges.
Moreover, the bullish sentiment among whales is corroborated by a surge in the netflow of large holders, which has climbed from negative 7.16k to 48.96k in the past day. A substantial uptick in netflow indicates more capital is flowing into the asset rather than out of it.
From the above analysis, it is evident that Ethereum is currently enjoying positive sentiment among large holders. With increased accumulation and capital inflows, ETH could witness further recovery on its price charts.
Therefore, if this optimistic sentiment persists, Ethereum has the potential to reclaim $4000 in the short term. Conversely, failure by buyers to regain market control could result in a decline in ETH price to $3713.