Whales’ Ethereum accumulations could result in an imminent price rally.
Ethereum’s whale activity surged on Friday after the cryptocurrency’s price fell below $2,400.
Ethereum’s price decline to $2,380 sparked increased whale transactions, reaching their highest levels in six weeks. According to data from blockchain analytics platform, Santiment, large-scale transactions, particularly those over $100,000, spiked after the price drop.
New Wallet Creations Signal Broader Interest
Santiment’s data revealed that Ethereum’s trading volume rose by 51.86%, increasing to $23.74 billion. This spike suggests that traders are responding to ETH’s recent price changes.
The data also noted that there were 6,428 newly created wallets on this day, the highest within 24 hours since Sept. 5, 2024. This increase in new wallets highlights a growing interest in Ether from retail and institutional investors.
New Wallets Created | Source: Santiment
However, this surge in new wallets could be fueled by anticipation of upcoming developments in the Ethereum network or broader trends within the cryptocurrency sector.
Ethereum’s Strength Against Bitcoin
Meanwhile, Ether has experienced reduced strength against Bitcoin, with the ETH/BTC pair trading near 0.0365 BTC, its lowest level since April 2021. This declining ratio suggests that Ethereum is struggling to keep pace with Bitcoin as several market conditions impact its price.
Factors such as underwhelming spot exchange-traded funds (ETFs) performances and increased competition from rival platforms like Solana are impacting trader interest in the leading altcoin. Moreover, market strategist Aksel Kibar, a former fund manager, anticipates further declines in the ETH/BTC pair, projecting it could approach 0.029 BTC — a key inflection point that the pair tested as support in 2021.
Kibar noted that a successful test of this level could be the bottom from which the pair starts another strong rally.
Can Ethereum’s Price Rally Strongly?
Ethereum is currently training at $2,470, down 2.80% in the last 24 hours per Coingecko data. After peaking near $2,500 earlier in the day, the price experienced a pullback before stabilizing at its current price range.
Ethereum 24-Hour Chart. | Source: CoinGecko
Technical indicators revealed mixed signals regarding the altcoin’s short-term price movements. The Moving Average Convergence Divergence indicator shows a bearish trend, while the Relative Strength Index (RSI) is at 43.73, falling below the neutral 50 mark.
The RSI indicates mild bearishness but does not yet suggest oversold conditions. Nevertheless, long-term investors will keep buying the dip, buoyed by the coin’s long-term prospects.
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