Quick overview
- Ethereum is currently trading above $2,500, with a 1.7% gain in the last 24 hours, reflecting a divide between retail profit-taking and institutional accumulation.
- Whales and sharks have increased their holdings by 1.49 million ETH in the past month, now controlling about 27% of Ethereum’s supply.
- Recent activity shows a significant rise in whale transactions within Ethereum’s DeFi ecosystem, indicating strong institutional interest despite a recent dip in ETF inflows.
- Technical analysis suggests Ethereum faces critical resistance at $2,620, with potential for further gains if this level is surpassed.
Ethereum ETH/USD is displaying a tale of two investor classes as the cryptocurrency maintains its position above $2,500, posting a 1.7% gain in the past 24 hours. While retail investors have been taking profits, institutional players and cryptocurrency whales are significantly increasing their holdings, creating an intriguing market dynamic that could signal future price movements.
Santiment, a company that analyzes cryptocurrencies, says that Ethereum whales and sharks, wallets that contain between 1,000 and 100,000 ETH, have gained a remarkable 1.49 million ETH worth over $3.79 billion in the last 30 days. This is a 3.72% rise in their entire holdings, which now stand at 41.61 million ETH, or about 27% of Ethereum’s current supply.
Divergent Investment Strategies Create Market Tension
The different ways that big investors and small investors act show that the market mood has changed a lot. Institutional investors have been aggressively buying up ETH, which shows that they are confident. Retail traders, on the other hand, have been making money, which has created a natural friction that has maintained ETH in a consolidation period around the $2,500 mark.
This whale buildup goes beyond just storing ETH. Santiment research shows that big investors are also using Ethereum’s decentralized finance ecosystem. Whale transactions on Ethereum Name Service went grown by an amazing 313.5%, and transactions on Ethereum loan protocols went up by 203.8%. Also, whale activity on layer-2 solutions like Base’s Virtual Protocol and USDC transfers on Arbitrum and Optimism went up by three digits.
Ether ETF Inflows Signal Institutional Adoption Despite Recent Setback
The spot ETF market also showed that institutions have faith in Ethereum. US-based Ether products had an amazing 19-day inflow streak before seeing a little drop on Friday, with $2.1 million in net outflows. This streak brought a total of $1.37 billion into spot Ether ETFs, mostly into BlackRock’s iShares Ethereum Trust ETF.
Dormant Whale Awakening Raises Market Concerns
But the market could have problems since a dormant wallet just woke up. A pre-mined Ethereum address that has not been used in 9.9 years sent 500 ETH to an address controlled by Binance. The wallet’s contents were worth only $620 in 2015, but now they are worth more than $5 million, which is an 820x return. If the remaining 1,500 ETH ($3.796 million) were sold, it could contribute to the selling pressure.
ETH/USD Technical Analysis Points to Critical Resistance Levels
ETH/USD
From a technical point of view, Ethereum is currently trading close to $2,575, which is close to the 100-hourly Simple Moving Average. The cryptocurrency has broken through a contracting triangle pattern with resistance at $2,550, which means it could go up even further.
The next big hurdle is $2,620, and the 50% Fibonacci retracement level from the last $2,880 high to the $2,441 low is $2,660. If ETH breaks above $2,660, it might quickly move up to $2,720 and maybe even $2,800 to $2,880.
On the other hand, if the price doesn’t break through the $2,620 resistance level, it might drop to the $2,500 support level, with further chances of going down to $2,440 and $2,420.
Ethereum Price Prediction: Institutional Strength vs. Technical Challenges
Ethereum is still down about 48% from its all-time high, even though a lot of whales have bought it and institutions are interested in it. It has only gained 1.8% and 3.8% in the last 14 and 30 days, respectively. The cryptocurrency will probably only be able to break out of its current consolidation pattern if institutional purchasing pressure can beat selling from idle wallets and continuing profit-taking by regular investors.
The technical indicators tell a mixed story. The hourly MACD is gaining strength in bullish area, and the RSI is above the 50 zone, which suggests that the market is strong. But how the market reacts to the $2,620 barrier level will be very important in deciding if Ethereum can start a long-term comeback or go through another period of consolidation.
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.
His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.
His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
