Ethereum whales scoop up 7,788 ETH – Will ETH finally break out?

Ethereum’s attempted rebound faced rejection at $2382 four days ago. Since then, the altcoin has closed at lower lows, touching a low of $ 2,252. 

At press time, ETH traded at $2297, down 0.6% on the daily charts, adding to its 2% weekly losses. Interestingly, with the market on its back foot, investors, especially whales, have taken the opportunity to accumulate. 

4 Ethereum whales add 7,788 ETH worth $17.67 million

According to on-chain monitors, four whales bought a significant amount of Ethereum [ETH] as the altcoin traded below $2.3k. 

Lookonchain reported that a whale wallet spent $5.81 million and bought 2,570 ETH at $2,261 after more than a year of inactivity.

Another whale linked to Erik Voorhees, who has been buying massive amounts of ETH, returned to accumulate more ETH. The whale spent $1.12 million and bought 494 ETH, raising total holdings to 127,716 ETH, worth $292 million. 

Thirdly, another whale spent $3.43 million to buy 1,500 ETH. Since February, this whale has bought 21,800 ETH worth $46.9 million, now sitting on $3 million in unrealized profit.

Lastly, Onchain Lens reported on another whale. According to the on-chain monitor, a whale returned after a year of dormancy and bought 3,224 ETH for $7.31 million at $2,267 per ETH.

In total, these four whales have accumulated 7788 ETH worth approximately $17.67 million. In doing so, these whales established a strong demand wall below $2.3k, giving ETH room for a rebound. 

Furthermore, exchange activity reflected this whale demand. As such, Ethereum’s Exchange Netflow dropped, falling to -18.7k ETH, a clear sign of aggressive spot accumulation.

Historically, aggressive whale accumulation has proven well for the ETH price action.

Can whale demand lift ETH out of the current weakness?

Although whales are actively piling in, ETH’s upside momentum has weakened. As such, downside pressure seems to be outweighing bullish pressure.

The altcoin’s Stochastic Momentum Index (SMI) evidences this market condition. SMI dropped to the negative zone to -28, suggesting strong bearish pressure.

This pressure arises from increased sell-side activity from other market participants. While whales are buying, others are selling.

As a result, the Ethereum Supply Ratio (ESR) has jumped significantly, at a monthly high of 0.126. At such elevated levels, it suggests that whale demand has remained inadequate to absorb pressure.

This weakens whales’ ability to lift ETH out of the current levels. As such, this suggests that ETH is likely to trade sideways between $2.2k and $2.3k.

However, if whales manage to absorb the pressure, the altcoin can flip $2.4k resistance and eye the expected seasonality level around $2536.

Final Summary

• Four Ethereum whales accumulated 7,788 ETH worth roughly $17.67 million as ETH traded below $2.3k.
• ETH may continue consolidating between $2.2k and $2.3k unless buyers absorb ongoing selling pressure more aggressively.