Over the past month, Ethereum [ETH] has traded in an upward trend. As such, since hitting a local low of $2,355, the altcoin has surged to hit $4096.
However, since reaching this level, it has experienced a correction and retraced to $3501. As of this writing, Ethereum was trading at $3,899. This marked a 0.6% decline on daily charts.
This market pullback created a buying opportunity especially for large holders with whales turning to buying the dip.
Whales continue accumulating ETH
According to On-chain tracker Lookonchain, whales are accumulating ETH after the altcoin’s price drops. As such, a whale created a new wallet and withdrew 5160 ETH tokens worth $20 million from Binance.
With whales accumulating ETH, it shows large holders confidence especially as long-term holders’ profits continue to rise.
We can see this as Ethereum’s MVRV long/short difference has continually increased over the past week. It has risen from 5.17% to 8.56% signaling not only market confidence but also rising profitability.
What ETH charts say
According to AMBCrypto’s analysis, Ethereum is currently experiencing a strong bullish sentiment amidst buying pressure from large holders.
As such, Ethereum investors have turned to accumulating the asset. This accumulation trend is evidenced by a rising outflow volume.
According to IntoTheBlock, outflow volume from exchanges has surged from $1.56 billion to $3.89 billion over the past week. This implies that more investors are transferring their ETH tokens into private wallets than exchanges.
This trend is further supported by a declining exchange supply ratio. This has dropped from 0.1468 to 0.143. Such a drop implies that more investors are bullish and are keeping their assets off exchanges.
Finally, this bullishness among whales is evidenced by a rising large holder netflow. Over the past day, this has surged from negative 7.16k to 48.96k. When netflow sees such a massive surge, it implies that there’s more capital inflow into an asset than outflows.
As observed above, Ethereum is currently experiencing positive sentiments among large holders. Therefore, with increased accumulation and funds inflow, ETH could see more recovery on its price charts.
As such, if these sentiments prevail, Ethereum could reclaim $4000 in the short term. Subsequently, if buyers fail to retake the market, ETH could fall to $3713.
