Posted: December 22, 2024

• Whales bought 340,000 ETH in the last 3 days worth more than $1 billion.
• ETH might have completed its correction as the Long Term Trend Directions is strongly bullish.

Ethereum’s ([ETH] whale activity contrasted with its price, showing significant buying during the downturn.

Over three days, whales acquired 340,000 ETH, valued over $1 billion, suggesting strategic bulk purchases during price dips.

This pattern against a backdrop of general crypto declines, sparked speculation about potential market rebound.

The activity aligned with historical patterns where substantial buys often precede market recoveries. This hinted that ETH might soon experience a price increase if this trend holds true.

Is correction over amid long term trend directions?

Ethereum weekly chart indicated a potential completion of its correction.

The price successively retested the Tenkan and Kijun lines of the Ichimoku Kinko Hyo indicator, suggesting a stabilization.

Further signs of support were evident as ETH interacted with the Kumo Cloud’s Senkou Span A, seen as a preliminary resistance turned support.

Additionally, the lagging span retraced to its Tenkan line, reinforcing the resilience of current price levels. Despite these bullish signals, there remained  caution with a possible retest of the Kumo Cloud’s Senkou Span B.

If Ethereum’s price approaches this line, it would likely signify a critical test of market sentiment and strength.

Again, the Long Term Trend Directions (LTTD) score the year could end at a strong bullish level of 0.82, suggesting a positive long-term outlook.

Despite a brief dip in mid-year, the LTTD returned to bullish territory.

Ethereum started a consistent climb, coinciding with the LTTD score maintaining above 0.5, indicating sustained buyer interest.

The sharp decline in the LTTD score in July corresponded with a price drop, showing a short-term bearish phase.

However, the quick recovery in LTTD by October and a corresponding price rise suggested the correction phase ended, and ETH was resuming its long-term upward trend.

Spot ETH ETFs flow

However, Ethereum ETFs experienced notable outflows, with BlackRock’s ETHA seeing the largest ever, around $103.7 million, during a week marked by market declines.

In contrast, Bitcoin ETFs also witnessed their most significant outflow since inception, totaling around $671.9 million.

This reversal ended two consecutive weeks of inflows for both Bitcoin and Ethereum ETFs.

Notably, despite the outflows, BlackRock accumulated substantial positions, adding 13.7K BTC valued at $1.45 billion and 33.9K ETH worth $143.7 million.

These movements indicated significant shifts in ETF dynamics, reflecting broader market sentiments and potentially setting the stage for future trends in cryptocurrency investments.