• Smaller ETH holders have sold more ETH recently, and whales are absorbing these sales.
• ETH has continued its upward trend.

Ethereum [ETH] has witnessed an extraordinary movement recently as whale investors purchased over 280,000 ETH, amounting to approximately $1 billion, in over five days.

This accumulation has stirred significant speculation about Ethereum’s future trajectory, especially with the asset trading near $3,700.

Combined with shifting exchange flows and an uptick in on-chain activity, all eyes are on whether Ethereum can sustain its bullish momentum or face a correction.

Ethereum whale activity fuels optimism

The sudden spike in whale accumulation, depicted in the on-chain data, underscores growing confidence among large investors.

This surge coincides with Ethereum’s recent price rally and its breakout from the $3,500 resistance level. 

Analysis of the chart from Santiment highlights the consistent addition of ETH by wallets holding between 100,000 and 1,000,000 ETH.

The charts showed that the whales switched to accumulation mode earlier in the month. The move could indicate a long-term bullish sentiment.

Exchange netflows reflect market behavior

A key metric supporting the bullish case is the net flow of Ethereum to and from exchanges. Analysis of Glassnode data revealed a significant fluctuation in the last few weeks.

However, there has been more outflow of ETH from exchanges, suggesting that traders are moving their holdings. 

The trend in exchange flows shows that the whale move has impacted, balancing the sell-off from retail holders.

This trend indicates a reduced likelihood of immediate selling pressure, which could further stabilize Ethereum’s price.

Challenges to Ethereum sustaining momentum

Despite these bullish signals, risks remain. Ethereum’s price is nearing overbought levels, which could trigger a short-term correction. As of this writing, ETH is trading at around $3,709, with a slight increase.

Also, an imminent Golden Cross was observed, with the 50 Moving Average (MA) getting closer to going above the 200 MA. 

 Read Ethereum’s [ETH] Price Prediction 2024-25

Ethereum’s recent whale accumulation and favorable on-chain metrics have set the stage for potential gains. However, caution is warranted given the asset’s overbought technical indicators and the possibility of profit-taking.

Ethereum appears poised for an extended rally, provided broader market conditions remain supportive.