There are indications that Ethereum [ETH] could be gearing up for another significant surge in the market. Recent data suggests that big investors, known as whales, have been increasing their holdings, leading to a period of consolidation for the cryptocurrency.
An analysis by a trader named Crow uncovered an interesting pattern in Ethereum on social media platform X. This pattern shows an accumulation phase that began in August and resembles a similar pattern from 2023. The 2023 pattern had a positive outcome following a period of consolidation from mid-August to mid-October.
Considering the similarities between the current situation and the 2023 pattern, it is possible that history may repeat itself with another bullish breakout.
Increasing Balances of Ethereum Whales
During a consolidation phase, the market can either turn bullish or bearish.
Recent data from IntoTheBlock shows a significant increase in whale holdings over the past two weeks. Whale accounts held 56.68 million ETH by mid-October, which rose to 59.2 million ETH by November 1st.
On the flip side, both regular investors and retail traders showed a decrease in holdings during the same period. It is evident that whales have been capitalizing on lower prices to accumulate more.
Moreover, Ethereum exchange transactions dropped to levels not seen since June. While exchange outflows surpassed inflows, indicating selling pressure, this resulted in a retesting of a key support level for ETH, hinting at a potential bullish turn in the coming week.
As of the latest update, ETH is trading at $2,502, struggling to find a clear direction.
Despite the hopeful support retest, there are signs suggesting a possible further dip in prices. The RSI indicator falling below 50% and the ongoing accumulation by whales might indicate a lack of sufficient demand for a significant rally.
Additionally, Ethereum faces tough competition from other cryptocurrencies like SOL and SUI, affecting its market dominance.
Market uncertainty has crept back in, potentially hindering Ethereum’s bullish prospects.
To sum up, the increased accumulation by whales is a positive sign for Ethereum’s attractiveness at its current price. However, uncertainties in the market may be preventing Ethereum from making significant upward movements.