Institutional investors have been accumulating Ethereum at a rapid pace after the SEC’s recent approval of Spot Ethereum ETFs. Crypto analyst Ali Martinez noted that this accumulation trend has created buying pressure that may very well be the much-needed catalyst for Ethereum to interrupt above the $4,000 price mark.
In line with a social media post by Ali Martinez, the variety of Ethereum addresses holding over 10,000 ETH tokens has increased by 3% within the last three weeks, showing a positive trend amongst large investors.
Whales Accumulating Pushes Ethereum Buying Pressure
Speculation over ETF approvals and increasing institutional buy-in have helped fuel Ethereum’s price increase earlier this yr. The primary price surge occurred in February when multiple reports got here out of the SEC potentially approving Spot Ethereum ETF applications after the approval of Spot Bitcoin ETFs.
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This saw the worth of Ethereum surging over 83% throughout the month to succeed in above $4,000 again for the primary time since 2021. Similarly, court rulings in May, which increased the chances of Spot Ethereum ETF approval, pushed the worth of ETH above $3,000 again.
Now that the SEC has finally approved these spot ETF applications, institutional investors are taking the possibility to load up their portfolios with Ethereum. In line with Glassnode data, this accumulation, which has been occurring for the past three weeks, has pushed the variety of wallets holding over 10,000 ETH past 975 and steadily approaching 1,000 addresses. Moreover, data shows that the variety of ETH mega-whale addresses has steadily increased up to now 30 days, with the recent metric showing an addition of 15 whale addresses.
The variety of #Ethereum addresses holding 10,000+ $ETH has increased by 3% within the last three weeks, signaling a very important spike in buying pressure! pic.twitter.com/7qq5HgGP37
— Ali (@ali_charts) June 9, 2024
On-chain data also reveals that social sentiment for ETH has stabilized after intense enthusiasm post-Spot Ethereum ETF approval. Nevertheless, this hasn’t stopped the huge withdrawal from exchanges, leading Ethereum to grow to be scarcer on centralized exchanges. This trend has now seen the Ethereum balance on centralized exchanges dropping below Bitcoin, whilst Spot Bitcoin ETF wallets also accumulate Bitcoins. In line with Glassnode data, lower than 10.56% of Ethereum’s total supply is currently held on major exchanges.
ETH Price Outlook: What’s Next After Critical Buying Pressure?
With whales doubling down on Ethereum, the buying pressure has reached a critical point. This surge of interest signals a really bullish outlook for Ethereum’s price in the approaching months, although there may very well be short-term volatility.
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On the time of writing, Ethereum is trading at $3,527 and has fallen 3.83% up to now 24 hours. While the rise in buying pressure is a very good start, the bulls still have some work to do to push Ethereum’s price higher. The primary major resistance wall is around $3,700, where 1.82 million addresses hold 1.8 million ETH.
BTC price at $3,500 | Source: ETHUSD on Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com