$ETH Whales are in action! Data shows that large investors are accumulating Ethereum at an astonishing rate, with balances skyrocketing by 52%! Meanwhile, retail investors are aggressively selling off. Experts claim this historic pattern is the 'final compression' before a trend reversal, indicating that a bottom for Ethereum may have already formed!
There has been a significant shift in Ethereum's spot order activity, indicating that large investors are accumulating assets at discounted prices. This pattern of behavior has historically often foreshadowed potential trend reversals.
According to CryptoQuant data, 'whales' holding between 10,000 and 100,000 Ethereum have increased their balance by 7.6 million tokens since the end of April, a rise of 52%. Meanwhile, retail wallets holding between 100 and 1,000 Ethereum have been aggressively selling off, with a 16% decrease in holdings.
After Ethereum fell to $3,000 in early November, higher-than-average spot trading volume indicators have been observed multiple times.
CryptoQuant certified analyst ShayanMarkets stated that this pattern usually "marks the beginning of a trend reversal, or the late compression phase before a significant rise."
Shawn Young, the chief analyst at MEXC Research, told Decrypt: "The likelihood of whale accumulation forming a local bottom is still quite high." He added, "This cycle looks very similar to previous bottoms, characterized by large wallets absorbing the sell-side liquidity from short-term holders."
Young pointed out that Ethereum's exchange rate against BTC stabilizing at months-low is a relatively strong sign. Additionally, daily trading volume has increased by 25% from September levels, and after the $19 billion market cap evaporation on October 10, the discounted Ethereum staking has normalized, further supporting this view.
This market signal is not limited to Ethereum; it reflects broader changes in market dynamics driven by improved macroeconomic prospects, including the potential end of one of the longest government shutdowns in the U.S.
Lai Yuen, an investment analyst at Fisher8 Capital, told Decrypt: "Whale accumulation makes sense, we see the same phenomenon with Bitcoin, as new participants are flooding in, absorbing the selling pressure from 'old players' who firmly believe in the four-year cycle theory."
Yuen believes: "If the macroeconomic situation remains favorable... the likelihood of Ethereum forming a local bottom at $3,200, and Bitcoin at $98,000 is quite high."
Yuen also emphasized: "Traditional finance is still full of expectations for asset tokenization," noting that a supportive regulatory environment could provide further catalysts.
Yuen added that a formal crypto market structure bill would also help boost Ethereum's price, as it would provide greater clarity in the market, ending the regulatory shadow that may leave investors on the sidelines.
However, as Decrypt previously reported, for bipartisan negotiations to resume this year, the government shutdown needs to end as soon as possible.
