Ethereum (ETH) has demonstrated significant upward momentum, recently testing the crucial resistance level of $4,500 following a surge in buying activity from large investors, commonly referred to as whales. As of today, the price of Ethereum stands at $4,480, reflecting a broader trend of accumulating interest in the cryptocurrency market.
Over the past fortnight, Ethereum whales have collectively acquired over 840,000 ETH, according to data from CryptoQuant. This increase in holdings comes in the wake of ETH’s price dip, with larger investors showing confidence in a potential recovery. Notably, investors holding between 10,000 and 100,000 ETH have contributed significantly to this accumulation, indicating a strategic move amidst fluctuating market conditions.
Record Accumulation and Institutional Demand
The trend of accumulation is not limited to whale addresses. Accumulation wallets—those which have not engaged in selling—added a remarkable 5.6 million ETH to their balances in September alone. This figure marks a record for monthly buying activity, continuing a trend for three consecutive months.
Institutional interest has also resurfaced, with U.S. spot ETH exchange-traded funds reporting net inflows totaling $755.2 million over three consecutive days, as per data from SoSoValue. This renewed demand reflects a growing appetite for Ethereum among institutional investors, highlighting its potential as a viable asset class.
Despite the positive sentiment, some whales have begun to book profits following the recent price recovery. Data compiled by smart money tracker Lookonchain indicates that while buying pressure remains strong, profit-taking is also occurring among significant holders.
Technical Analysis and Future Projections
From a technical standpoint, Ethereum has surpassed the 50-day Simple Moving Average (SMA), a bullish signal indicating potential upward momentum. However, the $4,500 resistance level poses a significant challenge. Should ETH successfully break through this barrier, the next target could be as high as $4,835. Conversely, if the price faces rejection at $4,500, critical support levels to monitor include $4,100 and the 100-day SMA.
The Relative Strength Index (RSI) currently sits above its neutral threshold, suggesting robust bullish momentum, while the Stochastic Oscillator is slightly in the overbought territory. These indicators imply that while the market is experiencing upward pressure, caution remains advisable as price corrections may occur.
Additionally, the derivatives market has seen subdued open interest, despite the recent price recovery. A notable increase of 280,000 ETH in open interest on Thursday indicates a shift towards a risk-on sentiment among traders, as reported by Coinglass. This growth in open interest suggests that the recent rally is largely driven by spot buying rather than leveraged positions.
In summary, Ethereum’s recent price action reflects a blend of increasing demand from both retail and institutional investors, bolstered by significant whale accumulation. As the market navigates these complex dynamics, the outcome of the test at the $4,500 resistance level will be pivotal in shaping the asset’s trajectory in the coming weeks.
