Key Points
- An Ethereum whale has withdrawn 5160 tokens, worth $20 million, from Binance.
- Ethereum’s price is showing signs of recovery, with large holders actively buying the dip.
Ethereum’s Market Performance
Ethereum (ETH) has seen notable price movement over the past month, following an upward trajectory. From a local low of $2,355, Ethereum soared to $4,096 before facing a correction. The price subsequently dropped to $3,501. As of writing, Ethereum is trading at $3,899, showing a slight 0.6% decline on the daily charts.
This market pullback provided a prime buying opportunity, especially for large holders, who have been seizing the dip to accumulate more Ethereum. Such activity indicates optimism and potential for future price increases, as large players position themselves for the next bullish phase.
Whale Activity and Market Confidence
On-chain tracker Lookonchain has reported a surge in Ethereum accumulation by whales following the price drop. One significant transaction involved a whale creating a new wallet and withdrawing 5,160 ETH, worth approximately $20 million, from Binance.
This large-scale accumulation by whales points to a high level of confidence among long-term holders, especially as their profits continue to rise. Ethereum’s MVRV (Market Value to Realized Value) long/short difference has also been increasing steadily from 5.17% to 8.56%, reflecting growing market confidence and profitability.
Ethereum’s Bullish Sentiment
Ethereum is currently experiencing strong bullish sentiment, primarily driven by large holders, according to AMBCrypto’s analysis. This buying pressure from whales has led to increased Ethereum accumulation, which is evident from the rising outflow volume.
Data from IntoTheBlock shows that Ethereum’s outflow volume from exchanges surged from $1.56 billion to $3.89 billion over the past week. This significant increase indicates that more investors are transferring their Ethereum tokens into private wallets, suggesting they are holding for the long term rather than trading actively on exchanges.
Additionally, the exchange supply ratio has dropped from 0.1468 to 0.143, signaling reduced selling pressure and more bullish sentiment among investors. A lower exchange supply ratio means that fewer tokens are available for trading, which often leads to upward price pressure.
Impact of Whale Sentiment on Ethereum’s Price
Whale activity and the overall bullish sentiment are further confirmed by a significant surge in Ethereum’s large holder netflow. Over the past day, the large holder netflow increased from a negative 7.16k to a positive 48.96k, suggesting more capital is flowing into Ethereum than out.
This large capital inflow, coupled with the accumulation by whales, is a strong indicator that Ethereum may continue its recovery. If these positive sentiments persist, Ethereum could reclaim the $4,000 mark in the short term. However, if the buying pressure weakens, Ethereum’s price could drop to around $3,713, potentially testing lower support levels.
Conclusion
Ethereum’s recent price fluctuations, coupled with significant whale activity, indicate a potential for continued recovery. The bullish sentiment among large holders, as evidenced by the rising netflow and outflows from exchanges, suggests that Ethereum is on track to regain its strength. Investors are closely watching for Ethereum to reach the $4,000 mark again, but market conditions will need to remain favorable for sustained price growth.
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