Since July, crypto whales have distributed Ethereum (ETH) in large volumes. This selling pressure impacted the price, which plummeted from over $3,500 at the time to $2,140 in the first week of September.
However, these same whales seem to have offered ETH a breath of fresh air through large-scale accumulation. In this online analysis, BeInCrypto explores what this could mean for investors as the market adjusts to a more bullish environment.
Ethereum stakeholders bought 70,000 coins
According to Glassnode, the number of Ethereum addresses holding at least 10,000 ETH as of September 16th was 918. As of this writing, this figure has increased to 925, indicating that Ethereum megawhales have accumulated at least 70,000 coins in the last seven days . At current prices, the purchase price is more than $185 million.
A decrease in the number of whales is usually a bearish sign for a cryptocurrency and usually results in a lower price. Thus, this significant accumulation suggests that the price of Ethereum may continue to rise.
The price recently rose from $2,295 to $2,640, fueling speculation that the cryptocurrency could reach July highs.
Read more: Ethereum restaking: what is it and how does it work?
While it may be too early to draw conclusions, bullish and bearish indicators appear to support further gains. Bulls are addresses that bought at least 1% of the total trading period during a certain period of time. On the other hand, bears are those who sold a similar volume.
According to IntoTheBlock, bulls have accumulated more ETH than bears over the past seven days. Thus, instead of succumbing to falling prices, the price of Ethereum can continue its newly discovered rise.
Roy Hui, founder and CEO of the Ethereum Layer-2 LightLink Chain blockchain, also seems to agree with this sentiment.
“Despite the challenges, ETH still boasts the highest number of developers, projects, users and overall adoption rate in the industry. The network effect, where the value of a network increases with the size of its nodes, is critical, and I believe ETH is currently undervalued,” Hui told BeInCrypto.
ETH Price Prediction: Time for $3037
In terms of Ethereum’s short-term forecast, the Input/Output of Money Around Price (IOMAP) metric shows that 52 million ETH were purchased from 2.7 million addresses, worth about $2,279. This volume exceeds the total number of coins accumulated from $2,717 to $3,037.
Typically, the higher the volume in a price range, the stronger the support or resistance. Thus, $2279 seems to be a strong support level for Ethereum.
Read More: How to Buy Ethereum (ETH) with a Credit Card: The Complete Guide
Based on this status, ETH price could exceed $2,717 once buying pressure increases again. If this happens, a rise above $3037 could follow.
However, if Ethereum megawhales decide to stay on the sidelines or the Ethereum Foundation begins to distribute, the forecast may not be valid and the ETH price could fall below $2,500.
