The bears in the Ethereum [ETH] market have once again managed to drive the price below $2,400, erasing most of the gains made in September. As a result, the cryptocurrency is now back within the range of its lowest levels for 2024.
An analysis of Ethereum’s price movements since the beginning of 2024 shows that prices below $2,400 have historically attracted significant buying interest. This indicates a high likelihood of a resurgence in demand for ETH in the coming days.
At the time of writing, ETH was trading at $2,381, showing a 1.34% increase in the last 24 hours. This uptick comes after six days of continuous selling pressure, hinting that the selling momentum might be losing steam.
While Ethereum could still potentially drop further, the easing of selling pressure could create an opportunity for renewed buying interest. Furthermore, the current price level is close to a key Fibonacci retracement zone, which could act as a catalyst for increased demand.
Is it a favorable moment to accumulate Ethereum?
On-chain data for Ethereum suggests that accumulation activities may already be underway, aligning with observations from the price chart. For instance, there were more coins moving out of exchanges (196,981) than flowing in (167,346).
The higher outflows compared to inflows indicate a higher buying pressure than selling pressure, which could explain the slight price increase witnessed in the last 24 hours.
Recent data indicates a slowdown in Ethereum exchange flows, with the current levels positioned at the bottom of the swings between demand and selling pressure.
Given the current scenario, a potential upswing could be in the cards. The strength of any upward movement following the recent selling pressure will depend on various factors, including demand from large holders. So, how much Ethereum are whales accumulating?
The latest data on large holders reveals significant engagement, with a noticeable disparity between the amount of ETH flowing into and out of whale addresses.
As of October 3rd, large holder addresses received over 323,000 ETH, while the outflows stood at just over 246,000 ETH.
This difference of approximately 77,000 coins represents nearly $183 million in net buying pressure.
The on-chain statistics strongly support the bullish case for Ethereum. However, whether ETH can sustain a significant upwards movement over the weekend hinges on its ability to attract substantial demand.