During the past fortnight, Ethereum [ETH] has been range-bound between $3100 and $3300 levels, unable to break out of this consolidation phase.
Despite the recent spike to $3446, sustaining this upward momentum has proven challenging for the altcoin. This has led to uncertainty in the market and a lack of clear trends among major investors.
Consequently, whales have been making contradictory moves, with some opting to offload their holdings while others are amassing more tokens.
Movement of Ethereum Tokens by Whales
Significant whale activity has been observed over the last 24 hours within the Ethereum ecosystem. During this period, whales have shifted a total of $217.4 million worth of Ethereum.
According to Whale Alert, one whale moved 29,999 ETH tokens valued at $98.5 million to Binance. This transfer indicates a potential intention to sell, and if the market fails to absorb this sizable dump, it could have negative repercussions.
Another whale transferred 30,000 ETH tokens worth $98.7 million from Arbitrum to an undisclosed wallet, which typically suggests an accumulation strategy in private wallets.
Additionally, a whale transferred 6099 ETH tokens valued at $20 million from OKEx to Cumberland. Transfers to Cumberland are usually linked to providing liquidity rather than selling activities.
These transactions indicate an accumulation of 36,099 tokens, with 29,999 tokens being moved for potential selling.
Analysis of ETH’s Current Position
Recent whale activities have escalated, with a surge in substantial transactions over the past day. Ethereum’s whale transactions have hit a five-month peak of 10.73k, showcasing increased whale involvement and reinforcing the network’s fundamentals.
Furthermore, a positive large holder’s netflow of 122.4k indicates bullish sentiment among these major stakeholders, with more whales buying rather than selling.
Despite some whales possibly liquidating their assets, the market is witnessing a stronger inflow as indicated by whale transfers showing more accumulation versus outflows.
Moreover, an MVRV (Z score) of 0.9 suggests Ethereum is currently undervalued, presenting whales with an attractive opportunity to enter the market at lower risks.
Future Prospects for the Altcoin
Whale transactions often influence price movements, and as a result, ETH has risen from $3260 to $3350 recently.
These transactions emphasize a trend of accumulation outweighing selling activities, indicating that the market has absorbed potential sell-offs comfortably.
While Ethereum has faced challenges in maintaining its bullish trajectory, the resilience displayed by large holders indicates optimism for the altcoin’s future.
If this positive sentiment persists, ETH is likely to encounter significant resistance around $3560. However, a retracement to $3000 could occur if bullish momentum weakens.