New York, NY: Ethereum’s recent dip in price has not deterred the optimism of traders and investors. Recent data reveals that Ethereum whales, large-scale investors, have accumulated over 700,000 ETH in the past three weeks, amounting to approximately $2.45 billion. This significant buying spree indicates that these whales see long-term potential in Ethereum and view the recent price decline as a buying opportunity.
The actions of these whales may suggest a level of confidence in Ethereum’s future, potentially contributing to price stability. At the current time of reporting, ETH is trading at $3,569.40. Despite a slight drop below the $3,400 mark, the price of ETH rebounded, possibly fueled by the accumulation of ETH by whales.
However, this uptick in price has not been enough to break the bearish trend established since May 27th. Following a double top pattern during that period, the price of ETH experienced multiple lower lows and lower highs. For ETH to surge to new highs, it would require significant bullish momentum, which may be challenging given the observed decline in the CMF (Chaikin Money Flow).
In contrast, the RSI (Relative Strength Index) for ETH has shown significant growth in recent days, indicating an increase in bullish momentum around ETH. If this momentum persists, ETH may test the $3,607.30 level and potentially break through that resistance, leading to a possible reversal. Meanwhile, analysis of Santiment’s data reveals a decline in Network Growth for ETH, suggesting a decrease in the number of new addresses showing interest in ETH. This, combined with a fall in the velocity of ETH trades, may not bode well for the cryptocurrency’s immediate future.