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Ethereum (ETH), the leading altcoin, has faced severe price resistance at the $3,200 level for the past 30 days. Since the beginning of February, when ETH dropped below $3,000, Ethereum whales have maintained an optimistic outlook on the asset.
Whales buying Ethereum amid price resistance
Recent developments suggest Ethereum whales are actively accumulating amid price fluctuations, possibly taking advantage of the price slump.
TraderPA, an on-chain analyst on X, spotted a correlation between the dip in ETH and their accumulation pattern among whales. Notably, on the chart shared by TraderPA, as ETH prices started declining, the volume of accumulations by whales kept growing.
Godfrey BenjaminWallet addresses with a minimum of 10,000 ETH have spiked to over 4,000.
Interestingly, these whales own between 10,000 ETH and 100,000 ETH. This massive accumulation by whales signals strong confidence despite the prevailing price fluctuation. The whales are obviously betting on a bullish future for ETH as retail investors choose to divest their portfolio.
Analysts have stated that this accumulation could trigger a rebound for Ethereum. This is because whale accumulation generally reduces the circulating supply of ETH, which could drive up prices. That is, if demand remains constant or an increase is recorded moving forward.
Will whale activity impact Ethereum's growth?
Renowned analyst Ali Martinez noted in a post that Ethereum whales have accumulated 430,000 ETH in the last 72 hours. This data aligns with TraderPA in the ongoing massive accumulation of whales.
TraderPA said the whale activity could "Send it (ETH) to all-time highs." This reflects bullish sentiment by the analyst, suggesting that Ethereum’s price could retest its ATH of $4,891.70, which it attained in November of 2021.
Alex DovbnyaAs of this writing, Ethereum's price was changing hands at $2,737.76, a slight increase of 0.86% in the last 24 hours. However, trading volume is still declining by 39.03% to $12.43 billion.
A shift in demand for ETH could ignite the anticipated increase in price for the leading altcoin, particularly with the confirmed Pectra Testnet activation date.
Dan Burgin
Vladislav Sopov