Ethereum (ETH) Whales’ $188 Million Buying Frenzy Hints at Run to $4,000

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As a seasoned researcher with over a decade of experience in the cryptocurrency market, I’ve seen my fair share of bull and bear runs. The recent accumulation trend by Ethereum whales and the growing interest from retail investors is reminiscent of the days when Bitcoin was on its way to hit its all-time high.

Ethereum (ETH) ‘big fish’ or whales have become active once more, but unlike previous periods where they offloaded the cryptocurrency, recent on-chain data indicates that they are now amassing ETH. Furthermore, there seems to be a growing enthusiasm among smaller retail investors for Ethereum as well.

This information pertains to Ethereum (ETH). BeInCrypto offers an in-depth analysis of recent advancements and how they might influence the value of Ethereum.

Ethereum Retail Investors, Big Wigs Are Buying

As an analyst, I’ve been tracking Ethereum’s large holder netflow, and on November 29th, it stood at approximately 28,680 Ether. However, today, there’s been a significant increase, with the netflow reaching 80,130 Ether. Essentially, this figure represents the difference between Ethereum coins being accumulated and those being sold by large holders or “whales.

In simpler terms, when there’s more buying of tokens by whales (large investors) compared to their selling, it usually signals a bullish trend. On the other hand, if they sell more tokens than they buy, it often indicates a bearish trend in the price movement.

In the last two days, there’s been a significant increase in Ethereum holdings by large investors, amassing approximately 51,450 ETH, which equates to about $188 million. If this pattern of buying persists at these volumes, the price of Ethereum might surge above $3,700.

Apart from whales, it’s worth noting that the Coinbase Premium Index indicates an upward trend. This index calculates the gap between the cost of Ethereum (ETH) on Coinbase compared to its price on Binance.

In simpler terms, when an index shows a decrease (negative reading), it often means there’s more selling activity, especially from U.S. investors. On the flip side, an increasing index (positive sign) indicates stronger buying activity, which is what we see happening with ETH at the moment.

Should U.S. investors persistently increase their holdings of Ethereum (ETH), a rising demand for it might push up the digital currency’s value, thereby reinforcing its predicted upward trend, as mentioned earlier.

ETH Price Prediction: Strong Support, Higher Value

From the day’s graph, it appears that the Parabolic Stop and Reverse (SAR) indicator sits beneath the price of Ethereum. This indicator, known as the Parabolic SAR, is a tool used to predict the trend of an asset’s price movement.

When the dot on the indicator line sits above the current price, it signals a resistance level. This means the asset might struggle to rise further. In contrast, for Ethereum, the indicator line is beneath the price, implying that there’s robust support in place, helping it maintain its upward trend.

Moreover, we at BeInCrypto noted the emergence of a bull flag pattern. This pattern indicates that buyers have taken the upper hand over sellers, potentially leading to an increase in ETH’s price. If this trend continues, it might propel Ethereum’s value up towards $4,000.

To clarify, it’s worth noting that significant Ethereum holders (often referred to as “whales”) could potentially impact this forecast. If their influence continues to grow, there’s a possibility that Ethereum could reach the stated goal.

Conversely, should whales decide to cease their purchases, this prediction may not hold true. In such a situation, the price of Ethereum might drop down to $3,425.

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2024-12-01 20:21