YEREVAN (CoinChapter.com) — Ethereum whales have been on a buying spree, accumulating over 200,000 ETH in the last 96 hours, totaling an impressive $540 million. This substantial purchase comes as analysts suggest that Ether could be nearing its local price bottom, raising eyebrows across the crypto market.
Ether Whales Boost Holdings Amid Price Drop, Signaling Confidence in Market Bottom
Despite a 4% drop in Ethereum’s price over the past 24 hours, these massive holders, often referred to as “Ethereum whales,” are still adding to their positions. Ethereum’s current trading price hovers around $2,627 as of Aug. 27, yet these whales continue to build their portfolios. According to data from CryptoQuant, shared by analyst Satoshi Sniper, this wave of buying suggests a strong belief in a potential bottom forming in Ethereum’s price.
Whale activity is a critical indicator in the crypto market, as these large transactions can significantly impact an asset’s price. Traders often keep a close eye on such movements, seeing them as a gauge of market sentiment.
Whale Accumulation Contrasts with $478M Ether ETF Outflows, Highlighting Divergent Market Strategies
Interestingly, the accumulation by Ethereum whales comes at a time when Ether exchange-traded funds (ETFs) in the United States are facing significant outflows. Since their launch, nine U.S. Ether ETFs have recorded a cumulative net outflow of $478 million, with that figure expected to reach $500 million soon. Data from Farside Investors highlights Grayscale’s ETHE ETF as a major contributor, having sold $2.5 billion worth of Ethereum since the ETFs were introduced on July 23.
This divergence between Ethereum whale activity and ETF outflows is noteworthy. While traditional finance investors appear hesitant, leading to a muted response in the ETF market, large Ethereum holders are taking a different approach, betting on a price rebound and possibly contributing to a future Ethereum bull run.
Analysts Debate Key Levels: $2,500 Support, $2,700 Resistance, and $3,000 Potential Target
Market analysts are closely watching Ethereum’s price levels as the whales continue their buying spree. Popular analyst CryptoBullet believes that Ethereum’s bottom could be in, as long as it stays above the $2,500 mark. In a recent post, the analyst emphasized the importance of this support cluster, suggesting that a consolidation around the 0.618 Fibonacci level and the 100-day moving average could precede a rally.
However, the $2,700 level remains a crucial resistance point, according to Nansen’s principal research analyst, Aurelie Barthere. Barthere noted that the upcoming Nvidia earnings report on Aug. 28 could be a decisive factor in determining whether Ether can break through this resistance level.
In contrast, another analyst, Titan of Crypto, is optimistic about Ethereum’s short-term prospects. He pointed out a gap on the Ethereum CME Futures 4-hour chart, suggesting it could drive the price up to the $3,000 mark.
At the moment of writing, Ethereum price stands at $2,587.78, reflecting a 4.85% drop over the past 24 hours. The market cap has also decreased by 4.94%, reaching $311.3 billion. Despite the downturn, trading volume surged by 31.89%, totaling $14.09 billion.
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