Ethereum’s price has been unable to surpass the 50- and 200-day EMAs for nearly two months. Wallets belonging to whales, holding more than 1 million ETH, now account for 32.3% of the total circulating supply. These whales are possibly amassing more tokens, indicating their anticipation of a potential rally. Despite Ethereum’s struggle to break through for the past two months, this challenge hasn’t affected investor sentiment, particularly among significant holders, who remain notably bullish.
The downward trend in Ethereum’s price may be nearing its conclusion.
Ethereum’s price, currently trading at $1,568, rebounded from the $1,533 support level last week, experiencing a modest increase. Despite these gains, the altcoin was unable to breach the 50-day Exponential Moving Average (EMA). Achieving this would have brought ETH closer to establishing the $1,686 resistance level as a solid support base.
Nevertheless, Ethereum’s price still maintains potential for recovery, particularly when examining the Relative Strength Index (RSI). The RSI is positioned in the bearish zone, hovering around the neutral mark of 50.0. With further recuperation, this level may transition into a reliable support zone, signaling a confirmed bullish trend.
However, in the event that the bullish signal fails to materialize and the $1,533 support is breached, the bullish outlook would be discredited, potentially leading to Ethereum’s price dropping below the $1,500 threshold.
Ethereum’s decline may be averted by large-scale investors.
The possibility of Ethereum’s price facing a decline does exist, but investor behavior may serve as a protective barrier against a bearish trend. This is notably evident in the actions of whale holders. While Ethereum is not primarily associated with whale dominance, these significant investors wield substantial influence over its price dynamics.
Santiment’s data reveals that addresses containing more than 1 million ETH have consistently been accumulating, now accounting for approximately 32.3% of the entire circulating supply. This represents the highest concentration of ETH in such addresses since July 2016, marking a seven-year high.
What’s worth highlighting is that this accumulation isn’t arbitrary. As observed in the chart below, these whales initiated active accumulation of ETH around mid-August, coinciding with a decline in Ethereum’s price. Since then, their collective holdings have increased by more than 1.5% and continue to grow.
This is poised to exert a positive influence on Ethereum’s price, a much-needed development to propel the altcoin past the $1,600 mark once again.