Ethereum Rises, Whale Accumulation Increases

Ethereum Rises, Whale Accumulation Increases – What's Next?

Ethereum is gaining momentum as its price continues to climb for the fourth consecutive day. This growth indicates that the asset might maintain its upward trend in the near future. As of January 4th, Ethereum's price rose by 1.35% in the last 24 hours, reaching approximately $3,140. However, trading volume has seen a sharp decline of 52%, totaling $12.40 billion, suggesting caution among traders and investors.

Key Takeaways

Ethereum's price has been rising steadily for four days, reaching $3,140.
Significant whale and institutional investments indicate a bullish outlook for the asset.
Many Ethereum withdrawals from exchanges suggest accumulation, while staking shows long-term confidence.
Technical analysis reveals a potential breakout from a symmetrical triangle pattern.
There is currently a struggle between bullish and bearish traders, reflected in the high leverage positions.

Ethereum is climbing, whales are buying - What happens next?

Whales and Institutions Boost ETH Accumulation

Amidst Ethereum's price increase, long-term holders, including cryptocurrency whales and institutions, are showing considerable interest in the asset, according to insights from on-chain analytics firm Onchain Lens. Recently, a notable crypto whale withdrew about 20,000 ETH, valued at $62.30 million, from various exchanges, including Coinbase and Galaxy Digital. Additionally, the firm Bitmine staked over 49,088 ETH worth approximately $152.7 million.

Withdrawals from exchanges generally suggest that investors are looking to accumulate their holdings, while staking reflects confidence in the asset's long-term potential. Moreover, investors on Wall Street are also inclined toward ETH, as seen in spot Ethereum Exchange-Traded Funds (ETFs), where over $174.43 million was invested as of January 2nd.

spot Ethereum Exchange-Traded Funds (ETFs)

All these developments contribute positively to Ethereum's optimistic outlook, raising questions about whether this is an ideal buying opportunity or if the price may dip once again.

Analyzing Ethereum's Price Action

Technical analysis from AMBCrypto indicates that Ethereum is forming a symmetrical triangle pattern on the daily chart and could be on the brink of a breakout. Following recent price movements, the asset is currently at the breakout level and is encountering resistance from a descending trendline and a horizontal level at $3,150.

Ethereum (ETH) price action

If Ethereum successfully breaks through this resistance, it could potentially rise by another 6%, aiming for the $3,600 mark. However, the Average Directional Index (ADX), which measures the strength of trends, is presently at 23.37, below the critical threshold of 25, indicating a lack of strong directional momentum for Ethereum.

Ongoing Battle Between Bulls and Bears

Currently, there is a significant struggle between bullish and bearish traders at the intraday level. Data from the derivatives analytics platform CoinGlass shows that traders are heavily over-leveraged, with significant positions formed at the downside level of $3,114.8 and the upside level of $3,177.5.

These positions amount to $244.93 million in long leveraged trades and $245.02 million in short leveraged trades, revealing mixed sentiment among intraday traders.

ETH Exchange Liquidation Map

Conclusion

As Ethereum continues its upward trajectory supported by whale and institutional investments, it creates a complex landscape filled with both opportunities and challenges for traders. The upcoming price movements will be closely observed as traders navigate the tug-of-war between the bulls and bears in the market.