During the recent month, Ethereum [ETH] has seen a significant uptrend. After reaching a bottom at $2355, the altcoin has successfully surpassed the $4k mark twice. Nevertheless, it has struggled to maintain a steady position above $4k.
As Ethereum faces challenges in breaking the $4k barrier, large investors have started showing interest in the market. Observers see whale activity as a crucial factor for Ethereum’s long-term growth.
Renowned crypto analyst Ali Martinez noted a rising trend in Ethereum whale accumulation after ETH crossed the $3,330 mark.
Increasing Whale Accumulation of ETH
Recent data from Lookonchain indicates a consistent rise in institutional Ethereum accumulation. Two wallets belonging to the same entity withdrew 4502 ETH valued at $17.54 million from Binance. These tokens were then staked with KelpDAO after being removed from exchanges.
Furthermore, another whale purchased 1600 ETH tokens worth $6.3 million from exchanges within the last 48 hours, as per Lookonchain.
The growing accumulation of the altcoin by whales reflects their confidence in its future market value. Institutions are thus eagerly adding to their ETH holdings in anticipation of a potential price surge.
The surge in demand and accumulation of Ethereum can be seen in the declining Large Holders Netflow to Exchange Netflow Ratio, dropping to 0.58%.
This sharp decrease signals a reduction in selling pressure from large investors. The focus now shifts to retail traders, indicating a trend of accumulation among whales, as mentioned earlier.
An increase in accumulation often precedes a price surge, as significant holders’ buying exerts upward pressure on the price, leading to a supply shortage. These conditions create a favorable setup for further Ethereum price gains.
Is Ethereum Poised for Sustained Growth Beyond $4k?
Typically, a surge in whale accumulation has a positive impact on an asset’s price. Ethereum has clearly benefited from this trend in the past month.
Currently, Ethereum is trading at $3968, marking a 2.07% increase over the last 24 hours. Moreover, the altcoin has shown a weekly gain of 1.48% and a monthly surge of 27.33%.
This upward momentum has put long-term holders in a profitable position. With ETH reclaiming the $4k resistance level, long-term holders have seen their profit margins rise significantly in the past day.
Boosted by their increasing profits, these holders are holding onto their ETH holdings in anticipation of further gains, signaling a robust market sentiment. Both whales and long-term investors appear optimistic.
Hence, if this positive market sentiment continues, Ethereum could experience further growth. A successful breakthrough above the challenging $400 barrier could pave the way for Ethereum to reach $4165.
Conversely, a corrective phase might see Ethereum retreat to $3852.