- Ethereum whales collect 6102 ETH tokens worth $23.84 million.
- ETH is up 2.07% in the past 24 hours.
Over the past month, Ethereum [ETH] has undergone a strong upward movement. As such, the altcoin has managed to reach $4k twice since its low of $2355. However, the altcoin has failed to make a sustained move above $4,000.
Source:
With ETH struggling to surpass this level, whales have entered the market. Stakeholders view whale activity as a necessary recipe for Ethereum’s sustainable growth.
Popular crypto analyst Ali Martinez noted that Ethereum whales have rallied more since ETH broke $3,330.
Whales collect ETH
According to Look at chaininstitutions continually accumulate Ethereum. For example, two wallets from the same maker withdrew 4,502 ETH tokens worth $17.54 million from Binance. After these tokens were withdrawn from the exchanges, the addresses listed them using KelpDAO.
Secondly, another whale bought 1600 ETH tokens worth $6.3 million on exchanges in the last 48 hours. Look at chain.
With the increased accumulation of the altcoin by whales, it shows their confidence in the future value of the market. As such, institutions try to accumulate ETH before it rises higher on the price charts.
Source: IntoTheBlock
We can see this increased demand and accumulation of Ethereum now that the Netflow to Exchange Netflow Ratio of large holders has fallen to 0.58%.
Such a sharp decline indicates a decline in whale selling pressure. Retailers must engage in exchange activities that often coincide with accumulation among whales, as observed above.
Often, a rise in accumulation can precede a rise in prices, as purchasing from large holdings creates higher buying pressure, resulting in a supply squeeze. These circumstances could provide the altcoin with more profits.
Can Ethereum See a Sustained Rally Above $4k?
Usually, increased accumulation of whales leads to a positive effect on the price of an asset. This impact was noticeable for Ethereum last month.
In fact, at the time of writing, Ethereum was trading at $3968. This was 2.07% over the past day. Likewise, the altcoin has risen on the weekly and monthly charts, up 1.48% and 27.33% respectively.
This upward trend has caused most long-term holders to make profits. As such, long-term holders’ profit margins have increased over the past day, with ETH regaining the $4k resistance.
Source: Santiment
With their rising profitability, they continue to hold on to ETH in anticipation of more profits, indicating greater market confidence. This shows that whales and long-term holders are bullish.
Read Ethereum’s [ETH] Price forecast 2024-25
Therefore, such positive sentiments, if allowed to prevail, could cause ETH to rise further. If so, Ethereum will claw back $400 after facing multiple rejections. A breakout from here will push ETH to $4165.
Consequently, a correction will cause ETH to drop to $3852.
