By
Godfrey Benjamin
April 29th, 2024
The newfound bullish trend has so far continued today across multiple timeframes, indicating a shift in market sentiment.
The Ethereum market is witnessing significant accumulation, most likely spurred by the belief in the crypto’s price potential this bull run. This bullish movement of the coin has been fueled by speculation surrounding the potential approval of an Ethereum Exchange-Traded Fund. Additionally, the deployment of the Dencun Upgrade, aimed at improving the network’s scalability, security, and efficiency, appears to be influencing ETH’s price.
For the past three weeks, Ethereum (ETH) has been trapped in a sideways trend, with its price bouncing around a relatively narrow range. However, Wednesday marked a turning point as the coin embarked on a bullish movement. This upward momentum continued for the whole week, with Ethereum accumulating gains of over 7% in 5 days and closing above $3,500.
The newfound bullish trend has so far continued today across multiple timeframes, indicating a potential shift in market sentiment. Consequently, some of the large investors, often referred to as “whales” in the cryptocurrency space, have seized the opportunity to accumulate more Ethereum tokens.
According to on-chain analytics posted by Godex AI on X, Spot on Chain revealed that two whales have made significant moves in the last couple of hours. These investors spent $35.11 million in stablecoins to acquire 10,322 ETH tokens. This substantial investment by these major players has undoubtedly contributed to the recent price surge, propelling Ethereum above $3,500.
Whales are buying $ETH on chain!
In the past 14 hours, two whales have spent a total of $35.11M in stablecoins to buy 10,322 $ETH, allegedly pumping the price above $3,400, including:
1. 8 wallets (likely one entity) spent 20.86M $USDT to buy 6,145 $ETH at ~$3,395 in the past 9… pic.twitter.com/ys3EfgMDm5
— Godex.ai (@Godex_AI) April 8, 2024
In a similar vein, Spot on Chain also revealed that an Initial Coin Offering (ICO) participant had recently deposited 1,069 ETH, valued at approximately $3.56 million, into the Kraken exchange. Such a substantial deposit from an ICO participant could be a plan to sell, accumulate more, or even distribute holdings to other assets.
ETF Approval and Dencun Upgrade Fuel Optimism
These accumulation patterns by whales showcase their belief in the potential future price increase of Ethereum. One of the driving forces behind this optimism is the possible approval of an Ethereum ETF, which could mirror the impact of the Bitcoin ETF approval in January of this year.
The launch of the BTC ETF was a pivotal moment for the cryptocurrency market, triggering a rally that propelled BTC to reach new all-time highs (ATH). If ETH receives similar approval, it could potentially ignite a comparable surge, enabling the coin to break through its previous ATH and reach unprecedented valuations.
Furthermore, the Dencun Upgrade, aimed at enhancing cost-effectiveness and improving network transactions, has also influenced market sentiment surrounding the coin. Although the solution went live in mid-March, it didn’t immediately impact the coin’s price as anticipated. The market only saw a bullish candlestick on that day, followed by a dip that lasted for the next few days. However, it appears the upgrade is beginning to yield positive signals as the market has started to turn bullish in recent days.
The bullish resurgence and whale accumulation have reignited hopes for a sustained uptrend, but only time will tell if these optimistic sentiments will translate into long-term price appreciation.