news 
Ethereum nears $4K breakout amidst heavy accumulation by whales
As the cryptocurrency market continues to experience volatility, there is a growing trend of increased accumulation by whales. According to recent data, Ethereum whales have accumulated 6102 tokens worth a staggering $23.84 million over the past day.
This influx of new investors and existing holders seems to be driven by the asset’s recent price action, which has seen it rise by 2.07% in just 24 hours. This surge is not without precedent, as Ethereum has already breached the $4,000 mark twice this month, only to correct back down.
Despite this volatility, the accumulation of ETH tokens is a clear indication that many players believe that the asset will continue its upward trajectory and potentially breach the $4K resistance once again. As such, stakeholders are now looking at whale activity as a key recipe for sustained growth in Ethereum’s price action.
The data from Lookonchain suggests that institutional investors are not only accumulating but also withdrawing ETH tokens worth $17.54 million and $6.3 million respectively from exchanges over the past 48 hours and one day. This buying pressure is expected to create a higher demand for Ethereum, which could result in a supply squeeze.
The charts have been reflecting this increase in whale activity as the Large Holders Netflow Ratio has dropped significantly to 0.58%. This decline indicates a reduction in selling pressure from these whales, resulting in an increased accumulation of ETH among institutional investors and long-term holders.
As such, there is growing speculation that this accumulation will precede a price increase for Ethereum. The asset’s current trading position at $3968 suggests that it may well breach the $4K resistance yet again. This sentiment is further bolstered by Santiment data which shows long-term holder profitability spiking in recent days.
Given these factors, it appears increasingly likely that ETH will not only reclaim its previous highs but also propel itself above $4,000 once more.
Source: ambcrypto.com
