Ethereum Hovering Above $3,700 As Mega Whales Accumulate: $4,900 Incoming?
May 30 2024 - 4:00PM
NEWSBTC
At spot rates, Ethereum prices have been edging lower, recently
even retesting the immediate support at $3,700. Even though the
coin is still hovering around this level, optimism is high that it
will spike higher in the coming days. Ethereum Whales Are Now
Accumulating Cementing this outlook, one analyst, citing on-chain
events, notes that a bullish narrative may be unfolding. Pointing
to the sharp increase in Ethereum addresses controlling over 10,000
ETH, the analyst is now convinced that investors are through with
their distribution and are not accumulating, expecting more price
gains. Glassnode data cited shows that the number of
addresses controlling over 10,000 ETH has been on the uptrend since
May 20. Notably, on this day, prices shot strongly, breaking above
$3,300 and $3,700. Related Reading: MATIC In Consolidation: Key
Price Levels To Watch After A Breakout The uptick boosted
sentiment, possibly explaining why whales are now accumulating and
not opting to liquidate, accepting to be shaken off from their
position following the recent correction from $3,900. When writing,
ETH is changing hands at around $3,700, up nearly 20% from May 2024
lows. From the daily chart, the coin is still within a bullish
breakout formation after clearing two crucial resistances (now
support) at $3,300 and $3,700. Therefore, despite the retracement
from $3,900, the uptrend remains. The coin, reading from the
candlestick arrangement in the daily chart, will likely ease above
$4,100 as buyers set their eyes on $4,900 or 2021 highs. It is
highly that these whales are institutions, most of whom are
optimistic about what lies ahead and positioning themselves for the
leg up. The sharp expansion in whale count means institutions are
increasingly confident in the vast Ethereum ecosystem. Continuous
Development And Spot ETH ETF Hopes One reason for this positive
outlook is the continuous development in the Ethereum network.
After the successful activation of Dencun in March, platform
developers are now focusing on the upcoming Pectra upgrade. This
hard fork is expected to further enhance the network, making
transaction processing more efficient and cost-effective. These
continuous developments are positioning the network as the
preferred host for decentralized finance (DeFi) and meme coin
activities. Related Reading: Political Memecoin Mania: Super Trump
Token Explodes With 200% Surge Beyond platform-related factors, the
United States Securities and Exchange Commission (SEC) recently
approved the listing of all spot Ethereum exchange-traded funds
(ETFs). The agency is yet to clarify its position on the status of
ETH. However, this will change with the approval of all S-1
registration forms for spot ETFs. Analysts believe the second most
valuable coin would have received the much-needed clarity if these
forms are given the go-ahead. Feature image from DALLE, chart from
TradingView
Ethereum (COIN:ETHUSD)
Historical Stock Chart
From Jul 2024 to Aug 2024
Ethereum (COIN:ETHUSD)
Historical Stock Chart
From Aug 2023 to Aug 2024