Ethereum (ETH) reclaimed the $1,800 level and maintained this level for three consecutive days. At press time, Ethereum was trading around $1,807 after rising slightly by 0.26% on the daily charts.
As the price stabilized, high net worth investors took the opportunity to increase their positions.
Ethereum whales continue to accumulate
Even Ethereum Having difficulty maintaining their trend, whales continued to buy at all price levels.
Accordingly lookonchainOne whale withdrew 4,948 thousand ETH worth $9.01 million. Following the latest purchase, the whale’s ETH holdings increased to 49,407 ETH, worth $84.3 million.
Moreover, Lens On Chain reported that another whale was accumulating ETH. According to the on-chain monitor, two wallets, likely affiliated with the same organization, purchased 6,358 ETH worth $11.59 million. In total, these two whales purchased 11,306 thousand ETH worth $20.59 million.
The fact that whales continue to accumulate and the market signals recovery indicates that confidence in the market is strong. Therefore, these whales are betting that prices will continue to recover and then increase on the price charts.
Is market demand for ETH increasing?
Spurred by the whales, demand appears to have recovered significantly across all market participants. Looking at CryptoQuant’s Exchange Netflow data, a strong market accumulation is seen.
As a result, Stock Exchange Net Flow remained negative for eight consecutive days, marking the longest negative streak YTD. A sustained period of negative net flows indicates that buyers have gained significant control, effectively displacing sellers.
As a result of continued foreign exchange outflows, shortages have increased significantly while supplies available for immediate sale have diminished.
In fact, the altcoin’s Exchange Supply Ratio (ESR) has fallen to 0.13, its lowest level in three weeks, as of press time. A drop in ESR indicates that fewer Ethereum tokens are entering exchanges than leaving them.
Historically on exchanges, such a setup has preceded Ethereum’s larger price appreciation.
Can ETH maintain its momentum?
Ethereum has struggled to maintain its uptrend, but the market appears to be recovering for all market participants.
As a result, the altcoin’s Relative Strength Index (RSI) has remained above 50 for the past eight days. The RSI’s upward trend coincides with a change in foreign exchange activity, indicating a demand-driven rally.
Most of the time, when this indicator remains strong while market demand is strong, ETH tends to make gains. Therefore, if the accumulation continues, investors could see Ethereum holding $1.8K and targeting $2,000.
However, for the altcoin to keep this bullish structure alive, it must close above the short-term Moving Average at $1,778. Failure to do so could lead to another price drop.
Final Summary
- Ethereum whales continue to accumulate ETH with the addition of two whales 11,306 thousand ETH worth $20.59 million.
- ETH remains around $1.8K as the bulls show significant control of the market.
