In the first week of February, Ethereum whale wallets holding over 10,000 ETH saw an increase of 2.3%, suggesting a growing confidence among large-scale investors in a potential Ethereum price rebound. The shift was accompanied by a significant movement of Ether from exchanges to these whale wallets, further reducing the short-term selling pressure on the cryptocurrency.
In concrete terms, over 121,512 ETH, valued at a staggering $323.4 million, were transferred from exchanges to whale wallets. This move is indicative of a bullish sentiment among these key players in the cryptocurrency market. Ethereum is currently trading at $2,700.01, reflecting a 2% increase in the last 24 hours.
Blockchain data has further corroborated this trend. Analyst Ali Martinez pointed out an increase in the number of Ethereum wallets holding at least 10,000 ETH. This number grew from 941 to 963 between February 1 and February 9, a rise of 2.3%. Historically, such accumulation of Ether during price dips has often been a forerunner to upward price momentum.
On-chain data from Lookonchain has also reinforced this bullish outlook. The data reveals significant Ethereum outflows from major exchanges, such as Binance and Bitfinex. One particularly notable transaction involved a whale-controlled address identified as “0xb99a…BcF5,” which transferred 56,909 ETH valued at $151.6 million from Binance. Another address, “0xEd0C…4312,” moved 64,603 ETH, worth approximately $171.8 million, from both Binance and Bitfinex.
Technical indicators also seem to suggest a potential trend shift. The Relative Strength Index (RSI) for Ethereum currently stands at 35.82, indicative of bearish market conditions. However, previous price rebounds have occurred when the RSI crossed the oversold threshold, suggesting that a shift may be on the horizon.
Similarly, the Moving Average Convergence Divergence (MACD) indicator signals bearish momentum, with its signal line maintaining a position above the MACD line. However, the gradually decreasing length of histogram bars could signal a potential bullish divergence and a declining selling force.
These recent trends in whale accumulation of Ethereum strongly suggest that market participants believe in the cryptocurrency’s recovery potential. The combination of rising whale ownership, significant withdrawals from exchanges, and changing technical indicators all point towards the likelihood of an Ethereum price recovery in the not-too-distant future. As always, market participants will continue to closely watch these developments to determine the future trajectory of Ethereum’s price.
