In recent weeks, more whale addresses have been accumulating Ethereum (ETH), despite the weakening bull trend of the cryptocurrency. This accumulation by large investors is seen as a bullish signal, especially as the price of ETH has been on a decline. Analysis by AMBCrypto revealed that wallets holding over 10,000 ETH have been increasing in number, with the total reaching around 980, up from approximately 952 at the end of May when ETH was trading at $3,074. Despite the price increase to around $3,700, these addresses have continued to accumulate more Ethereum, reflecting a positive outlook on the cryptocurrency.
Notably, the mega whale chart over the last 30 days has shown a significant increase in accumulation by major wallets, suggesting heightened buying pressure. This trend reversal towards accumulation indicates a potential price increase in the near future, with these addresses betting on a positive outcome. Furthermore, Ethereum’s Netflow on CryptoQuant has been dominated by negative flows in recent weeks, indicating that more ETH has been leaving exchanges than entering them. The netflow trend, combined with the accumulation by major wallets, is seen as a positive sign for ETH despite its recent price trend.
In terms of price action, Ethereum has been trading in the $3,600 range for the past three days, with a slight decline to around $3,670 at the time of writing. The Relative Strength Index (RSI) for ETH is currently above 52 but is on a downward trend, suggesting a potential further price decline that could push it below the neutral line. While the current trend is bullish, it is weakening, indicating a possible shift in market sentiment towards Ethereum. Overall, the accumulation by whale addresses, combined with the negative netflows from exchanges, paints a positive picture for the future of ETH.
Looking ahead, the market cap of Ethereum in terms of Bitcoin (BTC) is a topic of discussion, with the RSI indicating a weakening bullish trend for ETH. Despite this, the accumulation by large investors and the outflows of ETH from exchanges continue to suggest a positive outlook for the cryptocurrency. The recent surge in Bitcoin Non-Fungible Token (NFT) sales, which have surpassed Ethereum’s, raises questions about whether this signifies a potential Bitcoin season in the market. However, with the ongoing accumulation and positive signs for ETH, it is clear that there is still strong support and interest in Ethereum among investors.
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