Anonymity Surrounds Large Purchase of 5K Ethereum Tokens, Sparking Speculation on ETH Price Volatility
Throughout the previous month, Ethereum [ETH] has demonstrated a consistent uptrend. Beginning at a low of $2,355, the altcoin has seen significant growth, reaching $4,096.
Despite this surge, a correction followed, leading Ethereum to retrace back to $3,501. At the time of this article, Ethereum was valued at $3,899, indicating a 0.6% decline in daily trading.
This market downturn has presented an attractive opportunity for potential buyers, particularly for major holders, with some whales taking advantage of the dip.
Ongoing Accumulation of ETH by Whales
Recent data from On-chain tracker Lookonchain suggests a consistent accumulation of ETH by large holders following price drops. Notably, a whale initiated a new wallet and withdrew 5,160 ETH tokens valued at $20 million from Binance.
Amidst this accumulation by whales, it is evident that significant holders are gaining confidence, particularly as profits for long-term holders continue to increase.
Insights from ETH Market Charts
Analysis from CryptoCrypto indicates that Ethereum is currently witnessing strong bullish momentum, driven by increased buying pressure from significant holders.
The shift towards accumulating Ethereum is reflected in rising outflow volume, with data from IntoTheBlock revealing a surge from $1.56 billion to $3.89 billion over the past week. This suggests a growing trend of investors transferring their ETH holdings to private wallets rather than keeping them on exchanges.
A decreasing exchange supply ratio further supports this trend, dropping from 0.1468 to 0.143. Such a decline signifies a bullish sentiment among investors, who are opting to hold their assets off exchanges.
Moreover, the bullish outlook from whales is highlighted by a notable increase in large holder netflow, rising from -7.16k to 48.96k in the past day. A significant surge in netflow indicates a higher influx of capital into an asset compared to outflows.
The current scenario indicates a positive sentiment among large holders towards Ethereum. Thus, with increased accumulation and capital inflow, ETH could potentially witness further recovery in its market value.
If this sentiment persists, Ethereum might break the $4,000 mark in the near future. Conversely, failure to regain market control could lead to a drop in ETH value to $3,713.