- Crypto whales are actively accumulating Ethereum, withdrawing substantial amounts from centralized exchanges totaling millions of dollars.
- This accumulation coincides with Ethereum’s potential bullish chart pattern, suggesting a price surge towards $4,400, although regulatory uncertainties surrounding Ethereum ETFs remain a key factor influencing market sentiment.
In recent days, the crypto market has witnessed significant movements as large Ethereum holders, known as whales, have been accumulating substantial amounts of ETH from centralized exchanges. This strategic accumulation comes at a pivotal time for Ethereum’s price, which is currently poised within a potentially bullish chart pattern.
Lookonchain, a blockchain analytics platform, recently reported a major transaction where a crypto whale wallet (identified as 0xACc) withdrew a staggering 22,251 Ethereum from centralized exchanges, amounting to approximately $80 million. Over a three-day period, this whale moved a total of 33,925 ETH, valued at around $122 million, out of exchanges. Concurrently, another notable whale wallet (0x435) pulled out 3,092 ETH (worth $11.13 million) from Binance, adding up to a total withdrawal of 24,044 ETH (approximately $83.7 million) in the past three days.
Spot On Chain, another analytics platform, elaborated further on the behavior of these whales. They noted that the ETH holdings of 0x435 are currently valued at $86.62 million, indicating an unrealized profit of $2.93 million (about +3.51%). Additionally, this whale has sizable holdings in stablecoins like USDC and USDT, with a substantial portion being lent on platforms like Aave.
Ethereum’s Price Potential
At the same time, Ethereum’s price is exhibiting a potentially bullish chart pattern known as a double-bottom, which typically signals a trend reversal. The critical neckline for this pattern is situated at $3,678. If Ethereum manages to break through this level, analysts predict a potential surge of approximately 22% toward the $4,400 mark. However, resistance might be encountered around $4,100, a level that served as a local top in March.
Despite these optimistic price indicators, regulatory factors remain a concern. The impending deadline for VanEck’s spot Ethereum ETF application, set for May 23, looms large. Jan van Eck, CEO of VanEck, expressed doubts about the SEC’s willingness to approve such ETFs, citing historical trends that suggest a slim likelihood of approval.
“The way the legal process goes is the regulators will give you comments on your application, and that happened for weeks and weeks before the Bitcoin ETFs — and right now, pins are dropping as far as Ethereum is concerned,” van Eck explained.
The aggressive accumulation of Ethereum by crypto whales underscores a strong belief in the asset’s long-term value despite regulatory uncertainties. The outcome of the SEC’s decision on Ethereum ETFs could serve as a pivotal event that shapes Ethereum’s price trajectory in the coming weeks. Keep a close eye on these developments as the crypto market continues to evolve.
