After failing to maintain the $1.8k level, Ethereum has persisted in trading around $1.7k. As of this time, ETH is priced at $1748, reflecting a modest increase of 0.68% on the daily charts. Interestingly, this market pullback has generated an optimal buying opportunity, particularly for high-net-worth investors. Amid prolonged lateral price action, large holders have persisted in their accumulation efforts. Onchain Lens reports that a significant withdrawal of 30.01K ETH, valued at $52.84M, was executed by a whale from Coinbase Prime to a newly established wallet. Lookonchain reported two additional accumulating whales. According to the monitor, a newly created wallet has withdrawn 8,239 ETH, valued at $14.5 million, from various exchanges. The other whale acquired 11,843 ETH for a total of $20.8 million.
Two significant holders have amassed 20,082 ETH, equivalent to $35.3 million. Finally, a wallet withdrew 37,000 ETH, valued at $65.66 million, from Gemini and subsequently staked it in batches to the Eth2 Beacon Chain. In total, these four entities acquired 87,083 ETH, amounting to a value of $153.8 million. Whales aggressively accumulating during this period of market weakness indicates a strong confidence in future market prospects. Furthermore, exchange activity has mirrored this whale accumulation spree. In fact, whales have notably absorbed the available supply on centralised exchanges. Meanwhile, the Exchange Supply Ratio has reverted to the 2016 level of 0.129 at the time of reporting.
When the ESR declines to such low levels, it indicates that a greater volume of assets has exited exchanges compared to those entering them. Often, such market activity diminishes supply while heightening scarcity. Historically, an increase in scarcity has been a precursor to more significant upward price movements. Interestingly, despite a notable recovery in demand, primarily fuelled by significant investors, ETH has yet to demonstrate this shift in its price charts. Consequently, the momentum of the altcoin has exhibited a relatively subdued performance. For instance, when we examine the Stochastic Momentum Index, it has exhibited a bearish crossover and subsequently declined to 37. A bearish move here indicates that the trend has weakened significantly.
Consequently, the existing demand from whales has been inadequate to catalyse an upward movement. Given the current trend, it suggests a prolonged period of market weakness for Ethereum. Thus, if the prevailing trend continues, ETH could decline to the bearish threshold at $1710, with RSI rebounding at $1681 serving as critical support. However, if the accumulation by large investors finally materialises and the market begins to feel the impact, we could witness a significant upswing. For an upside move, Ethereum must reclaim the RSI breakdown at $1847, which will strengthen the altcoin’s upward momentum.