After failing to hold $1.8,000, Ethereum ($ETH) continues to hover around $17,000. At the time of writing this article, $ETH On the daily chart, it traded at $1,748 after rising slightly by 0.68%.
Interestingly, this market decline has created a great buying opportunity, especially for high-net-worth investors.
Ethereum whales are actively accumulating
Whales continue to accumulate as lateral migration continues. According to Onchain Lens, the whale withdrew 30.01K $ETHworth $52.84 million, from Coinbase Prime to your new wallet.
Lookonchain reported that two more whales were gathering. According to the monitor, $8,239 was withdrawn from the newly created wallet. $ETHvalued at $14.5 million from multiple exchanges.
Other whales purchased 11,843 pieces $ETH Worth $20.8 million. These two whales accumulated 20,082 $ETH Worth $35.3 million.
37,000 was finally withdrawn from the wallet $ETHacquired $65.66 million worth of funds from Gemini and staked it on the Eth2 beacon chain in batches.
These 4 whales purchased a total of 87,083 pieces $ETH Worth $153.8 million. Whales’ aggressive push during this period of market weakness shows confidence in the market’s outlook.
Furthermore, exchange activities are being carried out in response to the increase in the number of whales. In fact, whales are absorbing a significant amount of the available supply on CEX.
Meanwhile, the exchange supply ratio has fallen to 2016 levels of 0.129 at the time of writing.
When the ESR drops to such a low level, it means that more assets have flowed out of the exchange than are flowing into it.
Such market activity often reduces supply and increases scarcity. Historically, increases in scarcity have been preceded by stronger price increases.
Is there enough demand to increase demand? $ETH Price action?
What is interesting is that even though there has been a strong recovery in demand, mainly due to whales; $ETH has not reflected this on the price chart yet.
As a result, altcoin momentum remains relatively weak. For example, if we look at the Stochastic Momentum Index (SMI), it formed a bearish crossover and fell to 37.
A bearish move here suggests that the trend has weakened significantly. Therefore, the current demand for whales was found to be insufficient to prompt further increases.
If this trend holds, it would indicate a prolonged Ethereum market downturn. Therefore, if this trend continues, $ETH The RSI could rebound at $1,681 as an important support and fall to the bearish threshold at $1,710.
However, if the whale build-up finally materializes and the market starts to feel its impact, we could see a big rally. In order to move upward, Ethereum needs to recover the RSI breakdown at $1,847, which would strengthen the altcoin’s upward momentum.
Final summary
- Ethereum whales are actively accumulating, 87,083 $ETH Worth $153.8 million.
- Despite the recovery in demand for whales, $ETH It remains structurally weak and at risk of slipping again.
