Ethereum Whales Drive Bullish Momentum: Can ETH Break $2,900?Ethereum [ETH] has finally shown signs of revival recently, striving to establish itself in a bullish market. This not only reflects improved market sentiment but also is closely tied to a crucial factor: strong demand from Ethereum whales
Ethereum Whales Drive Bullish Momentum: Can ETH Break $2,900?
Ethereum [ETH] has finally shown signs of revival recently, striving to establish itself in a bullish market. This not only reflects improved market sentiment but also is closely tied to a crucial factor: strong demand from Ethereum whales.
For several months, there has been a strong correlation between Bitcoin dominance and ETH price. For most of the year, the BTC.D chart displayed a strong upward trend, climbing to a year-to-date high of 58.59%. However, when BTC.D started declining, ETH regained bullish momentum. This suggests that market liquidity began shifting towards altcoins, with Ethereum being one of the beneficiaries.
In the recent rebound, bulls have taken the lead, witnessing a 16% surge in the past seven days. This follows weeks of efforts in pulling away from the local bottom range. Metric evaluations show whales have been the driving force behind the latest rally, with their ETH balances consistently increasing since early September.
According to historical concentration data, as of September 1, ETH whale addresses held a combined 58.12 million ETH. Latest figures reveal that this number has climbed to 58.48 million as of September 23. This implies that whale addresses accumulated approximately 360,000 ETH in roughly three weeks, equivalent to $949.68 million worth of ETH at current market value.
From a more granular perspective, the inflow from large holders has significantly escalated in recent days. For instance, it surged from 101,740 coins on September 14 to 675,000 coins on September 19. The latest surge occurred on September 22, where inflows jumped from below 96,000 ETH to over 515,000 ETH on September 23. In contrast, the highest outflow from large holders for the month was observed between September 18 and 19, rebounding from 150,340 coins to almost 590,000 coins. As of September 23, outflows registered at 241,000 tokens.
Therefore, the inflow of addresses (demand) is significantly higher than selling pressure.
Can ETH sustain this newfound bullish momentum?
The current bullish run of Ethereum, particularly the rapid rise in recent days, can be viewed as a sign of recovery. In this scenario, many traders might anticipate further gains. However, sustained upward movement might be unrealistic. Short-term momentum could push the cryptocurrency closer to the $2,800, $2,900 price range. This range previously acted as both support and resistance. Therefore, some resistance might arise if the price pushes into the same range.
Overall, strong demand from Ethereum whales offers a strong backing for ETH's bullish momentum. However, short-term momentum may face resistance as the cryptocurrency approaches the $2,800, $2,900 price range. Future movement will depend on market sentiment, changes in BTC.D, and continued demand from whales.
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