Investors are accumulating Ethereum in droves amidst what could become a return to bullish sentiment for the cryptocurrency. Ethereum is currently ranging around $3,170, with its price undergoing volatility in the past seven days.
Amidst this price volatility, on-chain data has revealed an accumulation trend from Ether investors during the week. Additionally, transaction data has shown an uptick in whale movement of ETH to and from exchanges, with recent market happenings indicating a transformation in the price of the crypto asset.
Ethereum Sees Major Accumulation As Investors Stock Up
Ethereum is now at a fundamental junction which could see its price surging in the new week and beyond. This fundamental catalyst for a price surge has come through the recent entry of Spot Ether ETFs into the Asian market.
Regulators in Hong Kong have greenlit the launch of Spot Ethereum ETFs along with Spot Bitcoin ETFs in the country, prompting investors to make strategic ETH movements in light of an incoming price surge.
Particularly, on-chain data from IntoTheBlock shows a strategic accumulation pattern from ETH investors, with over $500 million worth of ETH leaving centralized exchanges in the past week. Interestingly, this surge in movement is the highest single-week outflow from exchanges recorded on the Ethereum network since February.
Half a billion $ETH was withdrawn from CEXs this week, the highest since February pic.twitter.com/rwvftXjiOz
— IntoTheBlock (@intotheblock) April 19, 2024
When investors withdraw crypto from exchanges, it usually means they’re looking to hold it for the long term. This behavior shows that these investors have confidence that the price of ETH will increase in value in the near future.
Similarly, data from whale transaction tracker Whale Alerts shows an uptick in ETH whale transactions during the week, with whale outflows from exchanges outpacing inflows.
???? ???? 10,119 #ETH (31,855,489 USD) transferred from #Binance to unknown wallethttps://t.co/OKoF8E5Q4Z
— Whale Alert (@whale_alert) April 20, 2024
Total crypto market cap currently at $2.322 trillion. Chart: TradingView
What’s Next For Ether?
Despite the outflows from exchanges, a concurrent selloff in exchanges drove the price down below $3,000 during the week to bottom out at $2,878. However, the currency has since reversed to the upside and is showing signs of a bullish momentum. At the time of writing, Ethereum is trading at $3,180 and is up by 4% in the past 24 hours.
Fundamentals surrounding Ethereum point to steady price growth during the weeks as the bulls look to clear the $3,200 price hurdle. One example of such catalysts is a new draft bill aimed at legitimizing stablecoins in the United States. As the blockchain network with the biggest stablecoin market, Ethereum is set to benefit from a clear-cut positive regulation regarding stablecoins.
While the US SEC continues to hesitate about the approval of Spot Ethereum ETFs in the country, this investment class is set to be launched at the end of April in Hong Kong. Ethereum ETFs hitting the Asian market signals growing institutional interest in the altcoin in all corners of the globe. This, in turn, could lead to the price of Ethereum surging past its current yearly high of $4,066.
Featured image from Pexels, chart from TradingView
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Author: Scott Matherson
