Ethereum (ETH) reclaimed the $1,800 level and held this level for three consecutive days. At press time, Ethereum was trading around the $1,807 level after a slight increase of 0.26% on the daily charts.
As prices stabilized, high net worth investors took the opportunity to increase their positions.
Ethereum whales continue to accumulate
Even as Ethereum Seeking to maintain the trend, whales continued to buy at every price level.
according to LoconchineThe whale withdrew 4.948 thousand Ethereum, worth $9.01 million. After the latest purchase, the whale’s ETH holdings increased to 49,407 ETH, worth $84.3 million.
In addition, Onchain lens Another whale reported collecting ETH. According to the on-chain observer, two wallets linked to the same entity likely purchased 6,358 Ethereum worth $11.59 million. In total, these two whales bought 11,306 thousand Ethereum worth $20.59 million.
When whales continue to accumulate and the market indicates a recovery, this indicates strong confidence in the market. Hence, these whales are betting on continued price recovery and subsequent gains on the price charts.
Is the market demand for ETH on the rise?
Demand appears to have recovered significantly across all market participants, driven by whales. A look at CryptoQuant’s Exchange Netflow data shows a strong buildup in the market.
As a result, Exchange Netflow has remained negative for eight consecutive days, marking the longest negative streak since the beginning of the year. A sustained period of negative net flow indicates that buyers have gained significant control and are effectively displacing sellers.
As a result of continued exchange outflows, scarcity has increased dramatically, while the supply available for immediate sale has decreased.
In fact, the exchange-offer ratio (ESR) for the altcoin has fallen to a three-week low of 0.13 as of writing. The decrease in ESR indicates that fewer Ethereum tokens are entering exchanges than leaving them.
Historically, such a setup on exchanges has preceded a larger rise in Ethereum prices.
Can ETH maintain its momentum?
Ethereum is struggling to maintain the uptrend, but the market appears 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 upward trajectory of the RSI coincides with a shift in stock market activity, indicating a demand-driven rise.
Often times, when this indicator remains strong while market demand is strong, ETH tends to see gains. Therefore, if the accumulation continues, traders may see Ethereum holding $1.8K and targeting $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 may result in another price drop.
Final summary
- Ethereum whales continue to accumulate ETH, two whales added 11,306 thousand Ethereum, worth $20.59 million.
- ETH continues to move around $1.8K, as the bulls show significant control over the market.
