Ethereum falls to $1.7K – Will a $153 mln whale push help ETH bounce back?

After failing to hold $1.8k, Ethereum [ETH] has continued to hover around $1.7k. As of this writing, ETH traded at $1748, after rising slightly by 0.68% on the daily charts. 

Interestingly, this market pullback has created a perfect buying opportunity, especially for high-net-worth investors. 

Ethereum whales are aggressively accumulating

Amid extended sideways movement, whales have continued to accumulate. According to Onchain Lens, a whale withdrew 30.01K ETH, worth $52.84M, from Coinbase Prime to a new wallet.

Lookonchain reported two more accumulating whales. According to the monitor, a newly created wallet withdrew 8,239 ETH, worth $14.5 million, from multiple exchanges.

The other whale purchased 11,843 ETH worth $20.8 million. These two whales accumulated 20,082 ETH worth $35.3 million. 

Finally, a wallet withdrew 37,000 ETH, worth $65.66 million, from Gemini and then staked it in batches to the Eth2 Beacon Chain.

In total, these four whales purchased 87,083 ETH worth $153.8 million. Whales aggressively piling in during this period of market weakness signals confidence in market prospects.

Furthermore, exchange activity has echoed this whale accumulation spree. In fact, whales have significantly absorbed the available supply on CEXs.

Meanwhile, the Exchange Supply Ratio dropped back to the 2016 level of 0.129 at press time.

When the ESR drops to such low levels, it implies that more assets have flowed out of exchanges than into them.

Often, such market activity reduces supply while increasing scarcity. Rising scarcity has historically preceded stronger upside price movement.

Is the demand adequate to boost ETH price action?

Interestingly, although demand has recovered significantly, largely driven by whales, ETH has not yet reflected this on its price charts.

As such, the altcoin’s momentum has remained relatively weak. For instance, when we look at the Stochastic Momentum Index (SMI), it formed a bearish crossover and fell to 37.

A bearish move here suggested the trend has weakened significantly. Thus, current whale demand has proved insufficient to inspire a move higher.

With the trend holding in this manner, it points to extended market weakness for Ethereum. Thus, if the prevailing trend continues, ETH could drop to the bearish threshold at $1710, with RSI rebounding at $1681 as critical support.

However, if the whale accumulation finally materializes and the market starts to feel the impact, we could see a major upswing. For an upside move, Ethereum must reclaim the RSI breakdown at $1847, which will strengthen the altcoin’s upward momentum.

Final Summary

• Ethereum whales are aggressively accumulating, adding 87,083 ETH worth $153.8 million.
• Despite the recovering whale demand, ETH remains structurally weak and risks another slip.