Key Points
- Ethereum whales drive bullish sentiment with major accumulation.
- ETH mirrors the 2019 pattern, signaling the potential for upward movement.
- Exchange outflows rise, reducing selling pressure as ETH shifts to cold wallets.
- Positive ETF sentiment supports long-term growth expectations.
Ethereum whales are playing a crucial role as ETH repeats a price pattern last seen in 2019, raising expectations for a bullish reversal.
The cryptocurrency has formed an ascending wedge, a setup that closely mirrors its price behavior before the Federal Reserve’s rate cut in 2019.
During that time, Ethereum dropped below the wedge, gathered liquidity, and then bottomed out before rallying significantly.
This time around, analysts predict that Ethereum could break below the wedge before a strong upside rally, likely in late Q4 2024 or early 2025.
However, if Ethereum remains below the wedge for too long, it could prompt further adjustments in trading strategies to minimize risks.
The increasing optimism is not just technical—Ethereum whales have been steadily accumulating ETH, reflecting growing confidence in its long-term potential.
Ethereum whales play their part as ETH repeats 2019 pattern: What’s next?https://t.co/ycdc8Mz5Xb
— John Morgan (@johnmorganFL) September 10, 2024
Ethereum Whales Steadily Increase Holdings
Since 2019, Ethereum whales—wallets holding large amounts of ETH—have been on a buying spree, accumulating more ETH with every dip.
This accumulation trend intensified following Ethereum’s Shanghai upgrade in 2023. At present, whales control over 43% of the circulating supply, edging closer to the 48% controlled by retail investors.
This steady accumulation by large holders indicates growing confidence that Ethereum whales expect significant price appreciation shortly. When whales make large-scale purchases, it often signals that these major market players foresee long-term growth.
The buildup of whale holdings is contributing to the overall bullish sentiment in the market. It suggests that even amid short-term fluctuations, the underlying fundamentals of Ethereum are strong, driven by its expanding role in DeFi, smart contracts, and NFTs.
Exchange Outflows Signal Confidence from Ethereum Whales
Further boosting the bullish narrative is the data showing significant Ethereum whale activity through exchange outflows. More than 40,000 ETH has been withdrawn from derivative exchanges and moved into cold wallets.
This move reflects reduced selling pressure, as investors prepare for future gains rather than looking for short-term profits.
This trend indicates that market participants view the current dip in Ethereum’s price as a temporary correction before a broader rally. Historically, when large amounts of ETH leave exchanges, traders expect the price to rise.
On the institutional side, Ethereum ETFs are showing positive signs, despite some negative flows. In the last 24 hours, Fidelity’s Ethereum ETF saw an uptick in inflows, while Grayscale’s ETHE recorded the largest outflow.
However, the overall sentiment around Ethereum ETFs remains optimistic, suggesting further support for price growth in the coming months.
With Ethereum whales continuing to accumulate, exchange outflows rising, and a favorable ETF environment, all signs point toward a potentially bullish end to 2024 and a strong start to 2025.
