During the past fortnight, Ethereum [ETH] has been range-bound, fluctuating between the $3100 and $3300 levels.
Despite reaching a recent peak of $3446 during this period, the altcoin has struggled to maintain momentum, causing uncertainty in the market and a lack of clear direction among large investors.
Consequently, whales have been making contradictory moves, with some opting to sell while others are in the process of accumulating.
Significant Movements by Ethereum Whales
In the last 24 hours, Ethereum has witnessed substantial activity from whales, with a total of $217.4 million worth of Ethereum being transferred.
According to reports from Whale Alert, one whale sent 29,999 ETH tokens valued at $98.5 million to Binance, indicating a potential intent to sell. Such a significant sell-off could have a negative impact on the market if not absorbed adequately.
Another whale moved 30,000 ETH tokens worth $98.7 million from Arbitrum to an undisclosed wallet, hinting at a strategy of accumulating in private wallets.
Furthermore, a whale transferred 6099 ETH tokens worth $20 million from OKEx to Cumberland. Normally, transfers to Cumberland are not related to selling but rather to provide liquidity.
These activities suggest accumulation of 36,099 tokens while 29,999 tokens were earmarked for selling purposes.
Analysis of the ETH Chart Movement
The surge in large transactions over the past day indicates increased activity by whales, with ETH’s whale transactions hitting a five-month high of 10.73k.
These actions demonstrate active participation by whales, reinforcing the fundamentals of the network.
Moreover, evidence suggests optimistic sentiment among large holders, with more funds flowing in than out. This is exemplified by a positive large holder’s netflow of 122.4k, indicating a higher number of whales buying rather than selling.
Observations by CryptoCrypto reveal that whale transfers indicate a greater emphasis on accumulation rather than outflows, indicating a net influx into the market despite potential selling by some whales.
Lastly, with an MVRV (Z score) of 0.9 suggesting undervaluation, there exists a favorable buying opportunity for whales to enter the market with minimal risk.
What Lies Ahead for Ethereum?
Whale transactions typically impact price movements, reflected in ETH’s surge from $3260 to $3350 at the current time.
The dominance of whale accumulations over selling actions indicates that the market has absorbed potential selling pressure comfortably.
Although ETH has faced challenges in maintaining a bullish trend, indications from large holders suggest a revival in sentiment.
If this optimistic outlook persists, ETH might encounter significant resistance around the $3560 mark. Failure by bulls to maintain the trend could lead to a reversal, potentially causing a decline to $3000.