Ethereum Targets $2,620 Breakout: ETH Whales Gather $3.79 Billion as Retail Investors Exit
The cryptocurrency Ethereum (ETH/USD) remains above $2,500 and has seen a 1.7% increase over the last day, revealing a story of two types of investors. As retail investors lock in gains, institutional players and cryptocurrency whales are increasing their holdings, creating an interesting market dynamic that may indicate future price changes.
According to Santiment, a cryptocurrency analysis firm, Ethereum whales and sharks—wallets holding between 1,000 and 100,000 ETH—have seen a remarkable gain of 1.49 million ETH valued at more than $3.79 billion over the past 30 days. Their total holdings have increased by 3.72%, now amounting to 41.61 million ETH, which represents approximately 27% of the current Ethereum supply.
Market Tension is Created by Divergent Investment Strategies
The varying behaviors of large investors versus small investors demonstrate that the market mood has shifted considerably. Institutional investors have been purchasing ETH aggressively, indicating their confidence. Conversely, retail traders have been profiting, resulting in a natural friction that has kept ETH consolidated around the $2,500 level.
This accumulation of whale status transcends merely holding ETH. Research by Santiment indicates that large investors are also part of Ethereum’s decentralized finance ecosystem. Whale transactions on the Ethereum Name Service skyrocketed by 313.5%, while those on Ethereum loan protocols increased by 203.8%. Moreover, whale activity on layer-2 solutions such as Base’s Virtual Protocol and USDC transfers on Arbitrum and Optimism increased by three digits.
Ether ETF Inflows Signal Institutional Adoption Despite Recent Setback
The spot ETF market demonstrated that institutions trust Ethereum. Ether products based in the US experienced an impressive inflow streak lasting 19 days before a slight decline on Friday, which saw net outflows amounting to $2.1 million. As a result of this streak, the total amount of funds entering spot Ether ETFs reached $1.37 billion, with the majority going into BlackRock’s iShares Ethereum Trust ETF.
Dormant Whale Awakening Raises Market Concerns
However, the market might face issues as a dormant wallet has just been activated. An Ethereum address that was pre-mined and has been inactive for 9.9 years sent 500 ETH to a Binance-controlled address. In 2015, the wallet’s contents were valued at just $620, but they are now worth over $5 million, representing an 820-fold increase. The sale of the remaining 1,500 ETH (valued at $3.796 million) could add to the selling pressure.
ETH/USD Technical Analysis Highlights Key Resistance Levels
Technically speaking, Ethereum is trading near $2,575, which is close to the 100-hour Simple Moving Average. The cryptocurrency has broken past a contracting triangle pattern with resistance at $2,550, indicating it could rise even more.
Conversely, if the price fails to surpass the $2,620 resistance level, it could fall to the $2,500 support level, with additional possibilities of declining to $2,440 and $2,420.
Ethereum Price Prediction
Despite the fact that numerous whales have purchased it and there is institutional interest, Ethereum remains approximately 48% below its peak value. Over the last 14 and 30 days, it has gained only 1.8% and 3.8%, respectively. For the cryptocurrency to break free from its current consolidation pattern, it will likely require institutional buying pressure to surpass sales from idle wallets and ongoing profit-taking by regular investors.
The technical indicators present a mixed picture. The hourly MACD is increasing in strength within the bullish area, and the RSI is above 50, indicating a strong market. The market’s reaction to the $2,620 barrier level will be crucial in determining
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