Ethereum Market Momentum: Institutional Backing and Whale Accumulation Drive Price Gains

Ethereum Nears $4K Breakout Amidst Heavy Accumulation by Whales

The cryptocurrency market has been witnessing a surge in Ethereum’s [ETH] price over the past month. The asset has been on an uptrend, and according to recent data, it appears that institutional investors are playing their part in fueling this growth.

Recent reports have revealed that whales have been accumulating large amounts of ETH tokens worth $23.84 million over the past day. This significant accumulation is a clear indication of the confidence these entities have in Ethereum’s future value.

As of writing, Ethereum is trading at $3,968, which represents a 2.07% increase over the past day and a whopping 27.33% gain on its weekly chart. On the monthly chart, it has gained an impressive 1.48%. With these figures in mind, it seems unlikely that the altcoin will not see some form of sustained rally.

It’s worth noting that the accumulation by whales is also accompanied by a significant drop in selling pressure from large holders. According to data provided by Santiment, the Large Holders Netflow to Exchange Netflow Ratio has declined sharply, indicating a substantial decrease in the amount of ETH being sold on exchanges. This trend suggests that institutions are not only accumulating but also providing support for the asset.

What’s more fascinating is the increased profitability experienced by long-term holders. Their profit margins have spiked over the past day, leading them to hold onto their tokens anticipating further gains and signaling a greater level of market confidence. It’s clear that this increased accumulation and market sentiment are setting Ethereum up for a possible breakout above $4K.

In light of these developments, it’s likely that we will see ETH reclaim its previous high of $4000 in the near future. A successful breach of this resistance could propel the asset to even greater heights, with some analysts suggesting that a potential target price may be around $4165.

Source: ambcrypto.com