Recent market activity has shown a notable surge in Ethereum [ETH] dynamics, with whales accumulating an additional 140,000 ETH in the past 24 hours. This accumulation trend coincided with a significant hack on Bybit, which saw approximately 405,000 ETH, valued at around $1.1 billion, being siphoned from the exchange and dispersed across various wallets.
The incident has sparked speculations about potential sell-offs and buybacks, creating uncertainty around Ethereum’s short-term trajectory.
Persistence of Ethereum whale accumulation
On-chain data reveals a consistent increase in holdings by large Ethereum investors. Over the last 24 hours, wallets holding between 10,000 and 100,000 ETH have acquired 140,000 ETH. Notably, there has been notable activity from wallets holding between 100,000 ETH and 1 million ETH.
This uptrend reflects a pattern where whales have been capitalizing on market dips, indicating a strong belief in ETH’s long-term prospects.
From a price standpoint, ETH showcased a modest recovery, trading at $2,692.35 with a 1.15% increase at the time of reporting. Nevertheless, the 50-day moving average remains higher than the current price, hinting at potential resistance levels hampering short-term gains.
Market sentiment post Bybit security breach
Following the recent Bybit security breach, concerns emerged regarding immediate sell pressure. Similar occurrences historically instigate heightened volatility as affected parties strive to recover assets, often leading to massive liquidations.
Analysts are divided on whether the stolen ETH will be dumped on the market, driving prices down, or if institutional buybacks will stabilize the value.
On-chain data indicates a mixed response from investors. While the number of new Ethereum addresses remained relatively steady, suggesting that retail traders have not drastically altered their positions in response to the breach, increased transactions from whale wallets hint at strategic adjustments among significant market participants.
A fragile recovery outlook?
Ethereum’s current price chart displays a consolidation phase, with the MACD indicator hovering below zero – signaling weak momentum. However, a potential crossover may indicate a trend reversal. Furthermore, the accumulation/distribution metric indicates some traders are selling while others are buying.
A breakthrough above the $2,802 resistance level could potentially propel ETH towards $3,000. However, failure to sustain current price levels may prompt a retest of support at $2,500.
Short-term forecast for ETH
Ethereum’s path ahead remains uncertain as whale accumulation counterbalances potential selling pressure from the Bybit breach. The market’s direction hinges on whether institutional buybacks uphold price stability or if the influx of stolen ETH triggers further downward movement.
With significant attention on whale activity and technical signals hinting at a recovery, traders are advised to closely monitor price fluctuations and on-chain behavior in the upcoming period.