Ethereum (ETH) price has been oscillating around the $3,000 mark as traders keep a close eye on a surge in whale activity, raising the question of whether the cryptocurrency might soon be primed for a rebound.
On-chain analytics Twitter account @lookonchain reported on Wednesday that a whale recently accumulated $32.14 million worth of ETH. According to the report, a whale who is long on Ethereum withdrew 6,030 ETH (valued at $18.09 million) from Binance just 20 minutes prior.
The whale has been steadily increasing their holdings, accumulating a total of 10,758 ETH ($32.14 million) from Binance since May 2. The strategy involved swapping ETH for stETH, depositing it into Aave, and then borrowing $28.5 million in stablecoins against it. The borrowed stablecoins were then used to purchase more Ethereum.
Whale activity often sends positive signals to the market, indicating that “smart money” might have insights or confidence in the asset that the broader market lacks. As such, Ethereum bulls are hopeful that this accumulation from a prominent whale could indicate a turning point after a recent price decline.
Currently, Ethereum is trading around $3,020, which is a 26% drop from its early March highs. Despite this decline, increased whale activity suggests that a recovery could be on the horizon.
![](https://sollcrypto.com/wp-content/uploads/2024/05/Screen-Shot-2024-05-10-at-7.35.19-AM.png)
Ethereum’s Struggle to Keep Pace with Bitcoin: Here’s What’s Happening
Ethereum’s price decline since March is primarily driven by a broader shift in market sentiment towards bearish territory.
After Bitcoin reached record highs above $73,000 in March due to optimistic ETF demand, it has since dropped to the $62,000 range, driven by slowing ETF inflows and broader macroeconomic headwinds.
However, Ethereum has experienced a steeper drop compared to Bitcoin. Bitcoin has fallen about 15% from its March peak, while Ethereum’s decline has been more pronounced.
One reason for this discrepancy is that Ether tends to be a higher-beta asset compared to Bitcoin. This means that in risk-on environments, Ethereum usually outperforms, but in risk-off conditions, it tends to underperform.
Additionally, the reduced optimism surrounding the approval of spot Ethereum ETFs could also be contributing to Ethereum’s underperformance.
Michaël van de Poppe (@CryptoMichNL) tweeted that the SEC is likely to reject Ethereum ETF applications this month, expecting either delays or extensions of 60 days, with a significant impact expected around July/August.
Given these expectations, the SEC’s probable rejection of Ethereum ETF applications might not significantly affect the market. The SEC’s ongoing investigation into whether Ethereum could be considered a security has also dampened enthusiasm.
Nonetheless, many market analysts believe that Ethereum could bottom out within the next one to two weeks, followed by a possible rebound.
Ethereum Price Forecast – What’s in Store for ETH?
Whale activity has sparked hopes of an Ethereum price rebound, but technical indicators suggest that the outlook remains uncertain.
Ethereum is currently caught in a downward trend channel that’s been in place since March. The price has also dipped below both the 50-day and 100-day moving averages. A recovery toward the $3,200 level is possible, but that area presents significant resistance.
With the next wave of a broader crypto market rally unlikely to gain momentum soon, Ethereum could face ongoing headwinds, making further gains challenging in the near term.
![](https://sollcrypto.com/wp-content/uploads/2024/05/Screen-Shot-2024-05-10-at-7.36.58-AM.png)
Although whale activity has raised hopes for an Ethereum price rebound, technical analysis points to a fragile outlook. Source: TradingView.
Ethereum may test support at $2,700 in the coming weeks, especially if Bitcoin falls back below $60,000. This level aligns closely with the 200-day moving average, suggesting it could serve as a robust support zone.
Ether Becomes Inflationary as Ethereum Transaction Fees Decline
The recent Dencun upgrade has lowered Ethereum transaction fees by up to four times, according to data from CryptoQuant.
This reduction in fees has led to Ether becoming inflationary for the first time since the Ethereum Merge, which occurred nearly a year and a half ago. Total Ether supply increased to 120.1 million on May 7, from 120 million on March 12, as reported by TOBTC (@_TOBTC) on Twitter.
The significant drop in Ethereum’s burn rate has raised concerns among some ETH traders, as many viewed continuous deflation as a crucial aspect of the cryptocurrency’s value proposition.
However, these traders should keep in mind that high fees can stifle Ethereum’s adoption. To maintain its position as the leading smart-contract platform in the web3 ecosystem, Ethereum needs to keep transaction costs competitive.
Ultimately, if fees on Ethereum are significantly higher than on other blockchains, users may choose to transact elsewhere. Lowering fees can be seen as a positive step toward broader adoption, even if it leads to a temporary increase in Ether’s inflation rate.
An Ethereum Alternative to Explore – Mega Dice (DICE)
Crypto investors seeking opportunities with greater upside potential than Ethereum (ETH) might consider investing in presales. These early-stage investments in Web3 projects and protocols offer native tokens at a discounted rate, allowing the project to raise funds for development. If a presale investment gains traction in the market, it can deliver exponential returns.
One project that has caught the attention of analysts at Cryptonews is Mega Dice Casino, a well-established crypto casino that recently launched a presale of its utility token, DICE. This token provides several benefits to holders, including significant cashback on wagers and passive income through DICE staking.
Mega Dice Casino is also offering a $750,000 airdrop to reward early presale investors. Their presale has already raised $870,000, and the project is expected to reach the $1 million milestone soon. Once that happens, the DICE token price will increase, so investors interested in this opportunity should act quickly.
Mega Dice Casino promotes itself as the leading GameFi project on Solana and is gaining momentum. With only $200,000 left before the next price increase, the potential for returns is high, making this an attractive opportunity for those looking to diversify their crypto investments.
To learn more and join the presale, visit the Mega Dice Casino website for additional details on how to participate in the DICE presale.