Recently, Ethereum has caught the attention of large investors, reflecting on its market performance.
Ethereum's Market Changes
In the past month, Ethereum has been following an upward trajectory. From a local low of $2,355, the altcoin soared to $4,096, after which a correction occurred, dropping the price to $3,501. At the time of writing, Ethereum was trading at $3,899, marking a 0.6% decline on the daily charts. This market pullback provided a buying opportunity, particularly for large holders.
Whale Activity and Market Confidence
On-chain tracker Lookonchain reported an increase in Ethereum accumulation by whales following the altcoin's price drop. A significant transaction was made by a whale who created a new wallet and withdrew 5,160 ETH tokens, worth $20 million, from Binance. This accumulation indicates a high level of confidence among large holders. This confidence is mirrored in Ethereum’s MVRV long/short difference, which has been steadily increasing from 5.17% to 8.56% over the past week, signaling both market confidence and rising profitability.
Bullish Investor Sentiments
AMBCrypto’s analysis suggests that Ethereum is currently experiencing strong bullish sentiment, with buying pressure from large holders. According to IntoTheBlock, the outflow volume from exchanges has surged from $1.56 billion to $3.89 billion over the past week, indicating that tokens are moving into private wallets. This trend is supported by a declining exchange supply ratio, which implies bullish investor sentiment as more assets are kept off exchanges. There is also a notable increase in large holder netflow, which has surged from negative 7.16k to 48.96k in the past day, suggesting more capital inflow into the asset.
Positive sentiments among large holders could lead to further price recovery for Ethereum. If these sentiments persist, Ethereum might reclaim the $4,000 mark in the near term. However, if buyers fail to regain market control, its price could drop to $3,713.
