ETH whales have been taking advantage of the dip in Bitcoin dominance by adding to their balances, supporting the recent bullish momentum.
- ETH bulls show up strong aided by robust demand from whales. Evaluating ETH’s next major price target. Can it soar to $2,900?
Ethereum [ETH] was finally showing recovery signs after its struggles to secure a bullish footing. An overall reflection of the improving market sentiment, but there is one particular factor that might have given ETH bulls their latest burst of energy.
There has been strong correlation between Bitcoin dominance and ETH price downside for months. This has been the case this year for the most part, with the BTC.D chart soaring to a YTD high of 58.59%.
ETH is once again regaining bullish momentum at around the same time that BTC.D has started to tank. This suggests that liquidity flows are starting to favor altcoins and Ethereum is benefitting from this.
The latest rally saw bulls dominate with a 16% upside in the last 7 days. This is after weeks of struggling to exit its local bottom range.
Our metrics assessment revealed that whales have been actively front-running the latest rally. Their balances have been growing since the start of September.
According to historical concentration data, ETH whale had 58.12 million ETH in their addresses as of 1st September. Their balances had grown to 58.48 million coins as per the latest data on 23rd September.
The whale address balances therefore grew by roughly 360,000 coins in about three weeks. This was equivalent to $949.68 million worth of ETH by present market value.
For more perspective, large holder inflows registered growth in the last few days. For example, inflows spiked from 101,740 coins on 14th September to 675,000 coins as of 19th September.
The latest spike saw ETH large holder inflows soar from below 96,000 ETH on 22 September to over 515,000 ETH on 23rd September. In contrast, large holder outflows registered their highest spike this month between 18th and 19th September when they bounced from 150,340 coins to almost 590,000 coins.
Outflows were at 241,000 coins as of 23rd September. Hence, address inflows (demand) was higher than sell pressure.
Can ETH sustain this new-found bullish momentum?
Ethereum’s current bullish run, especially its rapid uptick within a few days, could be viewed as a sign of recovery. In which case, many traders may expect it to continue rallying. However, a continuous rally may not be realistic.
Short-term momentum may push the cryptocurrency closer to the $2,800, $2,900 price range. This range has previously acted as a support and resistance zone. It may thus yield some resistance if the price pushes into the same range.
ETH’s RSI was at 60.03 at press time, which means it was not yet overbought.
Once ETH pushes into the aforementioned zone, there will be a higher likelihood of profit-taking and therefore, more sell pressure.
Take a Survey: Chance to Win $500 USDT
Previous: Ethereum whale sale raises concerns: Could ETH drop below $2,600? Next: Simon’s Cat price prediction: Can bulls reclaim momentum after ATH?
Source