Ethereum (ETH) has shown significant upward momentum, approaching the crucial resistance level of $4,500 on Thursday. This surge comes after notable buying activity from cryptocurrency whales and accumulation addresses, indicating a strong demand for the digital asset.
Over the past two weeks, Ethereum whales have acquired more than 840,000 ETH, according to data from CryptoQuant. Interestingly, despite a price decline in September, the balance of accumulation addresses increased by a record 5.6 million ETH. This trend marks a third consecutive month of record accumulation, showcasing investor confidence even amid market fluctuations.
Whale Activity and Institutional Demand
The recent buying spree among whale accounts, which hold between 10,000 to 100,000 ETH, underscores a growing optimism in the market. These investors have expanded their collective holdings, reflecting a strategic move following ETH’s recent price dip. Increased buying during price declines often signifies a belief in future price recovery, a sentiment echoed in the past week’s activity.
Institutional interest has also returned, with U.S. spot ETH exchange-traded funds (ETFs) experiencing $755.2 million in net inflows over three consecutive days, as reported by SoSoValue. This renewed institutional demand supports the belief that the current price trajectory could lead to further gains.
Despite the bullish signs, some whales have begun to partially realize profits amid the recent price recovery. Smart money tracker Lookonchain noted this shift, suggesting that while buying pressure remains strong, profit-taking is also occurring.
Market Dynamics and Price Forecast
On the derivatives front, open interest has remained relatively subdued, even as ETH’s price climbed. A recent increase of 280,000 ETH in open interest, noted by Coinglass, indicates a resurgence of risk-on sentiment. This increase suggests that the current price recovery is largely driven by spot buying rather than leveraged positions.
In the last 24 hours, Ethereum has seen $129.9 million in futures liquidations, with short liquidations accounting for $106.2 million. ETH’s ability to cross above the 50-day Simple Moving Average (SMA) while testing the $4,500 resistance is critical. Should ETH break through this level, it may pave the way for a potential rally towards $4,835.
Investors should keep an eye on the $4,100 support level and the 100-day SMA, as these will be crucial should ETH face a rejection at the current resistance. Technical indicators show that the Relative Strength Index is above neutral, while the Stochastic Oscillator hovers near overbought territory, further indicating a prevailing bullish sentiment.
In summary, Ethereum’s recent price movements showcase a blend of strong whale activity and institutional interest, positioning the cryptocurrency for potential gains in the near future. As the market continues to evolve, investors will be keenly observing these developments to gauge ETH’s trajectory.
