- Ethereum whales collected over 126,000 ETH worth $440 million in 48 hours.
- However, statistics pointed to a possible turnaround.
Ethereum [ETH] whales have been busy shopping for the past 48 hours. These large holders have purchased over 126,000 ETH, worth approximately $440 million, per analyst ali_charts.
This has led to a large influx of buying pressure at a time when the overall cryptocurrency market has been showing mixed signals.
Exchange activity is increasing
Along with the accumulation of whales, the exchanges have recorded an increase in activity. According to IntoTheBlock data, major platforms showed an increase in ETH trading volumes.
This uptick in exchange rate action typically occurs before significant price movements, as traders prepare for potential market shifts.
Source: IntoTheBlock
Despite Ethereum’s significant whale accumulation, its price has yet to rise substantially. Since the 10% gain during ETF approval week, ETH has fallen 6.83% to the press time price of $31.73.
Recently, ETH approached a key support level at $3068. The bearish pressure subsided as it approached this level. This signaled a reversal as major players could push prices higher for a bullish rally.
The RSI indicator (Relative Strength Index) stood at 16.85 at the time of writing and was approaching oversold territory. This is a potential signal that a price reversal could be bullish.
Source: TradingView
AMBCrypto’s analysis of Coinglass’s liquidity heatmap data indicated clusters of liquidity pools above and below the key support level.
A sudden price move in either direction could trigger a series of liquidations, potentially fueling the price movement.
Source: Coinglass
Will whale activity cause a rally?
Historical data shows that significant accumulation of whales often precedes a price increase. However, market dynamics are also complicated.
Read Ethereum’s [ETH] Price forecast 2024-25
Increased trading activity on stock exchanges could indicate that smaller investors are taking profits. This could neutralize the bullish pressure caused by whale buyers.
While the significant buying pressure from large holders correlates well with the price action, the market outlook in the coming days will be critical in determining whether the whale activity will trigger a bull run.