ETH accumulation trend continues as whales snap up 800K tokens from circulation

Source Cryptopolitan

Ethereum (ETH) keeps flowing into whale wallets. On-chain data reveals whales added 800K ETH in a single week, potentially leading to a breakout for ETH. 

Ethereum whales added 800K ETH in the past week, in another round of strong accumulation. The buying extends the trend from the past weeks, where whales spent up to $1.19B on ETH in a single day. 

Whale accumulation increased in the second part of September and continued in October, potentially leading ETH to a year-end rally. Historically, whale accumulation has preceded bullish market cycles. ETH whales also strategically sell for profit-taking, but the overall trend for ETH is to flow into no-sell accumulation wallets with a total balance of over 27M ETH. 

Whales bought up 800K ETH in a week, will the rally resume?
Whales accelerated their buying in September, boosting inflows to wallets with over 10K ETH. | Source: Cryptoquant

Spot accumulation and whale buying establish price floors for ETH, showing a readiness to hold for the longer term. Most of the ETH speculative activity happens on derivative markets, while spot traders rely on accumulation and staking. 

The fastest trend of loading up on ETH comes from wallets with 10K to 100K ETH balances. The accumulation accelerated in the past month, taking more ETH off the market. Whale activity became more notable in the third quarter, continuing into a potential year-end rally. 

Will ETH price follow the accumulation trend? 

Despite the ongoing accumulation of ETH, the token’s price remains stuck in a range. While BTC made new price records above $125,000, ETH has remained below its peak. 

Whales bought up 800K ETH in a week, will the rally resume?
ETH expanded in the past week, though still trading far from its all-time peak. | Source: Coingecko

ETH traded at $4,573.13 as of October 6, still awaiting a breakout. ETH expects a higher price range above $6,000 based on bullish predictions. However, short-term trading may cause a crash to $4,100 or lower.

Based on potential liquidatable positions, ETH is in a range between $4,700 and $4,400 on the downside. ETH is still rebuilding liquidity after a day of the highest liquidations since the 2021 bull market. 

Whales also put selling pressure on ETH

While accumulation is ongoing, short-term selling for profit may sway the market. Recently, Trends Research sent ETH to Binance, presumably for sale. 

Additional selling pressure came from an older ETH wallet selling 1,800 tokens. 

While large-scale wallets are buying, the market still has to absorb selling from retail. The overall bearish stance of retail has led to a turnover of ETH. According to Market Prophit signals, crowd money is much more bearish on ETH compared to smart money. 

Retail selling puts additional pressure on the price, and whales cannot always compensate. ETH is also facing demand from treasury companies and ETFs. In the short term, ETH is facing a significant sell wall at prices leading up to $4,900 and above, with the potential for short-term price resistance. 

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Disclaimer: For information purposes only. Past performance is not indicative of future results.
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