Ethereum’s price has made strong gains, rebounding to the $3,000 mark after experiencing a notable 16% increase. This surge comes as large investors, often referred to as ‘whales’, have significantly increased their holdings of ETH over the past six months. This uptick in accumulation coincides with the lowest exchange supply of Ethereum in nearly nine years and rising network activity.
Key Highlights:
- Ethereum whales are ramping up their purchases, having accumulated over 22 million ETH amid the recent price dip.
- Network metrics indicate that Ethereum could be poised for further upside, with upgrades planned for January providing additional support.
- Analysts suggest that breaking through the $4,000 mark may lead to new all-time highs for ETH.
Reasons Behind Ethereum’s Rebound
Recent data indicates a sustained confidence among Ethereum whales, who have leveraged the recent price dip as an opportunity to increase their stashes. Analysts from CryptoQuant report a growing divide in investment behavior between smaller retail wallets and larger whale addresses, indicating a redistribution of holdings rather than an influx of new speculative investment.
Analyst CW stated, “Large whales holding over 10K do not accumulate during a rally. They only accumulate when $ETH is undervalued before the rally begins,” emphasizing the whales’ strategy.
Ethereum: Balance by holder value
Ethereum: Balance by holder value
Analysts have also noted that recent whale purchase rates have reached record levels, suggesting a strong likelihood of a further rally, especially following a significant decline in Ethereum available on centralized exchanges.
The supply of ETH on exchanges has plunged by 45% to a low of 10.2 million, compared to 18.5 million in July, implying that less ETH is readily available for sale as more coins are moved to cold storage or locked in smart contracts.
ETH balance on exchanges. Source: Glassnode
ETH balance on exchanges. Source: Glassnode
Analyst DustyBC exclaimed, “Supply shock incoming,” as further developments unfold in Ethereum’s market.
Resurgence in Ethereum Network Activity
Ethereum’s network activity is on the rise, evidenced by a 22% hike in active addresses over the past week. Transaction volumes have also surged by 16%, averaging 11.3 million transactions monthly.
Top blockchains ranked by seven-day AAs and transaction count
Top blockchains ranked by seven-day Active Addresses and transaction count
Additional figures from Santiment reveal a remarkable increase in new Ethereum wallets, with an average of 163,000 newly created addresses per day as compared to 124,000 in July.
Ethereum daily network growth. Source: Santiment
Ethereum daily network growth. Source: Santiment
Rananjay Singh remarked on Ethereum’s robust activity, stating, “Adoption is quietly picking up.”
Analysts Predict Ethereum’s Uptrend
According to recent data platforms, ETH is trading at approximately $3,061, reflecting a 2.5% increase in the last 24 hours. Analysts believe that crossing the $3,200 threshold will be crucial for determining ETH’s potential for upward movement.
Michael van de Poppe commented, “Ethereum is building up for a breakout upwards,” emphasizing the importance of overcoming key resistance levels between $3,100 and $3,200.
ETH/USD daily chart. Source: Michael van de Poppe
ETH/USD daily chart. Source: Michael van de Poppe
Bitcoin market observers note that if ETH can surpass the 50-day exponential moving average (EMA) around $3,150, it could significantly boost prices toward $3,450 and even $4,000.
Important Note: This article does not offer investment advice. Readers are encouraged to conduct their own research regarding investment risks.
