Recently, Ethereum [ETH] bears managed to drive the price below $2,400 once again, erasing most of the gains made in September. As a result, the cryptocurrency is back within the lower range it hit in 2024.
An analysis of Ethereum’s price movement since the beginning of 2024 shows that prices below $2,400 have historically led to notable demand. This indicates a strong possibility of a resurgence in demand for ETH in the upcoming days.
At the time of writing, ETH was trading at $2,381, following a 1.34% increase in the past 24 hours. This comes after facing selling pressure for six consecutive days, hinting that the selling interest might be waning.
While Ethereum might continue to decline, the easing selling pressure could pave the way for renewed buying interest. It’s worth noting that the current price level is close to a significant Fibonacci retracement zone, which could potentially trigger a fresh surge in demand.
Is It a Suitable Time to Re-Accumulate Ethereum?
On-chain data related to Ethereum suggests that accumulation may already be underway, aligning with the observations from the price chart. For instance, there were higher outflows of ETH from exchanges, totaling 196,981 coins, compared to inflows of 167,346 coins.
The higher outflows than inflows on exchanges indicate that buying pressure outweighed selling pressure. This could explain the slight uptick in ETH’s price over the last 24 hours.
Observations show that the flow of ETH on exchanges has slowed down recently, now resting at the bottom of the swings between demand and selling pressure.
Based on the current data, a potential uptrend seems favorable. The strength of this uptrend post the recent selling pressure will be influenced by various factors, including demand from large holders. The question remains: How much Ethereum is moving into these whale addresses?
The latest data on flows to large holders indicates active participation from whales, with a notable gap between ETH going into and out of these wallet addresses.
As of 3 October, large holder addresses received more than 323,000 ETH, while the outflows amounted to just over 246,000 ETH. This difference of around 77,000 coins translates to nearly $183 million in net buying pressure.
Considering the on-chain data, the case for Ethereum bulls appears strong. However, the potential for a significant upward move over the weekend hinges on the ability of ETH to attract substantial demand.