Over the past week, some of the biggest Ethereum whales, those with assets ranging from 1 million to 10 million ETH, have amassed an impressive 100,000 ETH, worth a whopping $230 million.
This active buying attitude of influential investors emphasizes their unwavering belief in the long-term potential of Ethereum, even despite recent price corrections.
Despite the recent price drop, indications from the recent Ethereum whale activity point to continued confidence in a continuation of the bullish market.
Wealthy traders are collecting millions in Ethereum
After the promising start in the early days of December 2023, several cryptocurrency assets, especially Ethereum, showed robust performance.
Crypto whales have reportedly devoured hundreds of millions of dollars worth of Ether, the leading altcoin, over the past seven days, according to a respected expert.
Some of the largest #Ethereum whales have been busy buying whales and have collected over 100,000 $ETH in the last week – that’s a whopping $230 million! pic.twitter.com/jWHY6MXDgs
— Ali (@ali_charts) December 16, 2023
On the social networking site
Price increases typically result from high demand for merchandise from wealthy investors, and the recent accumulation of whales indicates that this is the case.
On December 7, Santiment Feed linked a whale accumulation pattern to ETH’s rise, which culminated in a 19-month high above the price of $2,350.
As a rule, whale activity affects the prices of cryptocurrency assets. Recent activity among ETH whales indicates that a price increase may be approaching.
Ethereum currently trading at $2,235 on the daily chart: TradingView.com
Although there is currently a lot of buying pressure in the market, caution is advised as the bottom could not have been reached yet.
RSI and stochastic neutral, Ethereum uncertainty
The relative strength index (RSI) and the stochastic index are both currently in neutral territory, according to data from CryptoQyant. Despite the buying activity, there is still uncertainty about the true bottom of the market.
We looked at the liquidation heatmap to try to estimate Ethereum’s possible support levels. Based on the analysis, there was an increase in liquidations between $2,140 and $2,170.
This implies that before Ethereum’s price initiates its next bullish rebound, it will likely fall below these levels. But in the event of a rally, Ethereum would need to overcome a significant resistance level near $2,380.
Source: Santiment
Ethereum’s short-term price changes are difficult to predict due to the complex interaction of market indicators and liquidation data.
Meanwhile, the price of $2,148 appears to be the asset’s short-term support, according to an analysis of the daily ETH price chart. To increase the chances of another rise before the end of 2023, bulls will hope this level holds.
If there is a break below, it could indicate the construction of a more complicated bullish continuation chart pattern, similar to a bull flag. Over shorter timescales, this pattern could resemble a descending channel and undermine expectations for another significant increase in 2023.
Ether and other cryptocurrency values are sensitive to a number of external variables, including general macroeconomic sentiment. Ethereum is already up 81% this year at its current price.
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