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Ethereum price plunged 13% in one week. That being said, major investors seem to ignore the current crypto market volatility. On the contrary, they are increasing their purchases. This suggests a bullish outlook in the medium term. More details in the following paragraphs!
In brief
- Despite Ethereum’s plunge, crypto whales are quietly continuing their massive accumulation strategy.
- Even though technical signals remain mixed, institutional investors show no sign of retreat.
Ethereum: sharp drop, but historic accumulation by whales
Within ten days, Ethereum lost more than $600 in value. Specifically, the ETH price went from $2,869 to $2,233. Mainly fueled by tensions between Israel and Iran, this drop could have triggered a panic movement. Yet, onchain analysis data reveal quite the opposite.
According to CryptoQuant, wallets holding more than 10,000 ETH accumulated over 265 million dollars on June 21. At the same time, net inflows to “smart money” wallets surpassed 871,000 ETH. A record since 2017! This behavior of sustained accumulation reinforces the idea that major investors anticipate a near-term recovery for Ethereum.
Another strong signal: spot ETFs like BlackRock’s have not recorded any significant outflows since their launch. On the contrary, they continue to attract capital. This simply means that institutions seeking strategic digital assets are increasingly turning to Ethereum.
Ethereum: between bullish technical signals and retreat threats
Technically, Ethereum’s weekly chart shows a structure identical to the consolidation phase observed between 2019 and 2021. The price of this crypto asset is indeed trading above its 50-week moving average. It thus forms a bullish chart pattern (ascending triangle). For some crypto experts, the ETH token could break its all-time high.
But beware! If the $2,350 resistance doesn’t break, a fallback to $2,100 (or even $1,800) remains possible. Some crypto analysts even mention an extreme drop to $900 in case of prolonged selling pressure.
The market thus remains tense. Nevertheless, accumulation signals on Ethereum are clear. Between institutional resilience and solid technical outlook, the market’s No. 2 crypto seems to be preparing a rebound. The breakout above $2,350 could change everything. To be continued…
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My name is Ariela, and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago, but it is a universe that greatly interests me. The topics covered on the platform allow me to learn more. A singer in my spare time, I also cultivate a great passion for music and reading (and animals!)
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
