At spot exchange rates, ethereum prices have been declining, recently even retesting the immediate support at $3,700. Even though the currency is still hovering around this level, optimism is high that it will rise in the coming days.
ethereum Whales Are Now Piling Up
Consolidating this perspective, an analyst, citing chain events, twitter.com/ali_charts/status/1796137229015798124″ target=”_blank” rel=”nofollow”>grades that a bullish narrative may be developing. Noting the sharp rise in ethereum addresses controlling more than 10,000 eth, the analyst is now convinced that investors are done with their distribution and are not accumulating, awaiting further price gains.
Glassnode data cited shows that the number of addresses controlling more than 10,000 eth has been in an uptrend since May 20. Notablyin this dayprices skyrocketed stronglyexceeding 3,300 and 3,700 dollars.
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The rally boosted sentiment, possibly explaining why whales are now accumulating and not opting to liquidate, agreeing to be shaken out of their position following the recent correction from $3,900.
As of this writing, eth is trading around $3,700, up nearly 20% from the May 2024 lows. According to the daily chart, the coin is still within a bullish breakout formation after clearing two crucial resistances. (now support) at $3,300 and $3,700.
Therefore, despite the pullback from $3,900, the uptrend remains. The coin, based on the arrangement of the candles on the daily chart, will likely fall above $4,100 as buyers set their sights on $4,900 or 2021 highs.
Importantly, these whales are institutions, most of which are optimistic about what lies ahead and are positioning themselves to take advantage. The sharp expansion in the number of whales means that institutions are increasingly confident in the vast ethereum ecosystem.
Continued development and detection of eth ETF hopes
One of the reasons for this positive outlook is the continued development in the ethereum network. After the successful activation of Dencun in March, the platform's developers are now focusing on the next Pectra update.
This hard fork is expected to further improve the network, making transaction processing more efficient and cost-effective. These continuous developments they are positioning themselves the network as the preferred host for decentralized finance (DeFi) and meme coin activities.
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Beyond platform-related factors, the United States Securities and Exchange Commission (SEC) recently approved the listing of all spot ethereum exchange-traded funds (ETFs).
The agency is yet to clarify its position on the status of eth. However, this will change with the approval of all S-1 registration forms for spot ETFs. Analysts believe that the second most valuable currency would have received much-needed clarity if these forms were given the green light.
Featured image of DALLE, TradingView chart
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