Ethereum [ETH] reclaimed the $1,800 level and has held this level for three straight days. At press time, Ethereum was trading around $1,807 after rising slightly by 0.26% on the daily charts.
As the price steadies, high-net-worth investors have seized the opportunity to increase their positions.
Ethereum whales continue to accumulate
Even as Ethereum struggles to maintain its trend, whales have continued to purchase at every price level.
According to Lookonchain, a whale withdrew 4.948k ETH worth $9.01 million. Following the recent purchase, the whale’s ETH holdings increased to 49,407 ETH, worth $84.3 million.
Additionally, Onchain Lens reported another whale accumulating ETH. According to the on‑chain monitor, two wallets likely linked to the same entity purchased 6,358 ETH worth $11.59 million. In total, these two whales purchased 11.306k ETH worth $20.59 million.
When whales continue to accumulate and the market signals recovery, it indicates strong confidence in the market. Thus, these whales are betting on continued price recovery and subsequent gains on the price charts.
Is ETH’s market demand on the rise?
Incentivized by whales, demand seems to have recovered significantly across all market participants. A look at CryptoQuant’s Exchange Netflow data shows strong market accumulation.
As a result, the Exchange Netflow has remained negative for eight consecutive days, marking the longest negative streak YTD. A sustained period of negative net flow suggests that buyers have gained significant control and effectively displaced sellers.
As a result of these continued exchange outflows, scarcity has increased significantly, while supply available for immediate sale has declined.
In fact, the altcoin’s Exchange Supply Ratio (ESR) declined to a three-week low of 0.13 as of writing. A drop in ESR indicates that fewer Ethereum tokens are entering exchanges than leaving them.
Historically, such a setup on exchanges has preceded greater price appreciation for Ethereum.
Can ETH sustain its momentum?
Ethereum has struggled to maintain an uptrend, but the market seems 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 trajectory coincides with a shift in exchange activity, suggesting a demand-driven surge.
Often, when this indicator holds strongly while market demand is strong, ETH tends to make gains. Therefore, if the accumulation persists, traders could see Ethereum hold $1.8k and target $2,000.
However, the altcoin must close above its short-term Moving Average at $1,778 to keep this bullish structure alive. Failure to do so could lead to another price drop.
Final Summary
- Ethereum whales continue to accumulate ETH, as two whales added 11.306k ETH worth $20.59 million.
- ETH continues to hover around $1.8k, as bulls show significant control of the market.
Source: Original Article
