Ethereum (ETH) whales are at it again, but this time, they are not selling cryptocurrency like some times of the year. Instead, on-chain data shows a significant accumulation of ETH, with retail investor interest also increasing.
What does this mean for ETH? TinTucBitcoin reveals all the details, analyzing the developments and their potential impact on the price of Ethereum.
Retail investors and Ethereum “giants” are buying
On November 29, the net throughput of major Ethereum holders stood at 28,680 ETH, but today, this number jumped to 80,130 ETH. Net flow measures the difference between the amount of coins accumulated and the amount sold by whales.
Positive net flow indicates that “whales” are buying more tokens than selling, a signal that is usually quite positive. Conversely, negative net flow suggests increased selling, which is typically negative for price action.
Recent data revealed that Ethereum “whales” accumulated about 51,450 ETH — worth about $188 million — in just two days. If this buying trend continues at the same volume, ETH price could surpass $3,700.
Besides “whales,” CryptoQuant data shows that the Coinbase Premium index has increased. This index measures the difference between the price of ETH/USD on Coinbase and on Binance.
A negative value often indicates selling pressure, especially from US investors. Conversely, a positive reading signals increased buying pressure — a trend currently observed for ETH.
If US investors continue to accumulate ETH, this growing demand could push the cryptocurrency’s price higher, supporting growth potential as noted earlier.
ETH Price Prediction: Strong support, higher value
Based on the daily chart, the Parabolic Stop And Reverse (SAR) indicator is below the price of ETH. Parabolic SAR is a technical indicator used to determine the direction of an asset’s price movement.
When the indicator’s dotted line is above the price, it indicates resistance. Therefore, the asset in question has difficulty climbing higher. However, in the case of Ethereum, the indicator is below the price, suggesting that the cryptocurrency has strong support to continue its upward momentum.
Furthermore, TinTucBitcoin has recorded the formation of a bullish flag, which indicates that buyers have left sellers unresponsive. With this position, ETH price could climb to $4,000.
However, it should be noted that Ethereum whales may play a role in this prediction. If these powerful actors continue to increase, ETH could reach its stated goal.
On the contrary, if the “whales” stop buying, this prediction may be invalidated. In that scenario, Ethereum could drop to $3,425.