Ethereum (ETH) has been on an upward trajectory, recently testing the significant resistance level of $4,500. This increase follows notable buying activity from large investors, often referred to as whales, alongside a surge in accumulation addresses. As of today, Ethereum’s price sits at $4,480.
Over the past two weeks, Ethereum whales have acquired over 840,000 ETH, reflecting a robust demand despite a recent price dip. According to data from CryptoQuant, investors holding between 10,000 and 100,000 ETH have collectively added this substantial amount to their portfolios since September 18, 2023. This trend suggests a strong confidence in Ethereum’s recovery potential, as previous similar patterns have historically led to price increases.
Record Accumulation and Institutional Interest
In addition to whale activity, accumulation addresses—wallets that do not engage in selling—have set a new record by adding 5.6 million ETH in September alone. This marks the third consecutive month of record buying by these addresses, indicating a growing belief in Ethereum’s long-term value.
Institutional interest has also surged, with US spot ETH exchange-traded funds (ETFs) experiencing net inflows totaling $755.2 million over three consecutive days, as reported by SoSoValue. This renewed demand from institutional investors highlights a broader resurgence of confidence in Ethereum’s market performance.
Despite the positive sentiment, some whales have started to take profits, as indicated by data from Lookonchain. This behavior may suggest a cautious approach among some large investors, balancing the potential for further gains against the risks associated with price volatility.
Technical Analysis and Future Projections
From a technical standpoint, Ethereum has recently crossed above its 50-day Simple Moving Average (SMA), reinforcing bullish momentum as it tests the critical $4,500 resistance. Should Ethereum manage to clear this level, the next target could be around $4,835, although a descending trendline may pose an additional hurdle.
If the price encounters resistance at $4,500, key support levels to watch include $4,100 and the 100-day SMA. The Relative Strength Index (RSI) is currently positioned above neutral, while the Stochastic Oscillator suggests a slight overbought condition, signaling that while bullish momentum is strong, caution may be warranted.
In the derivatives market, open interest has remained relatively subdued despite the recent price recovery. A recent report from Coinglass noted a jump of 280,000 ETH in open interest, indicating a potential shift towards a more risk-on sentiment among traders. This uptick suggests that the recent price movements have largely been driven by spot buying rather than leveraged positions.
As Ethereum navigates these pivotal levels, the combination of whale accumulation, institutional interest, and technical indicators will play a crucial role in shaping its price trajectory in the coming weeks.
