At spot rates, Ethereum prices have been degenerating slightly, recently even retesting immediate support at $3,700. Although the coin is still oscillating around this level, there is great optimism that its price will go even higher in the coming days.
Ethereum whales are currently gathering
Cementing this prospect, one analyst cited events on the chain notes that a bullish narrative may be developing. Pointing to the surge in Ethereum addresses controlling over 10,000 ETH, the analyst is now convinced that investors have finished distributing them and are not accumulating them in anticipation of further price increases.
The cited Glassnode data shows that since May 20, the number of addresses controlling over 10,000 ETH has been on an upward trend. Especiallythat dayprices have gone up stronglycrossing the $3,300 and $3,700 levels.
The rally has improved sentiment, which likely explains why whales are currently accumulating and not liquidating, accepting being knocked out of their position after the recent correction from $3,900.
ETH is currently changing hands at around $3,700, up almost 20% from the May 2024 lows. From the daily chart, the coin is still in a bullish breakout formation after breaking two key resistances (currently support) at the levels of $3,300 and $3,700.
Therefore, despite the pullback from $3,900, the uptrend continues. As seen from the candlestick pattern on the daily chart, the coin is likely to fall above $4,100 as buyers focus on the 2021 highs or $4,900.
It’s highly likely that these whales are institutions, most of which are bullish about what lies ahead and preparing for an advantage. The surge in whale numbers means institutions are increasingly trusting Ethereum’s enormous ecosystem.
Continuous development and seeing hope for the ETH ETF
One of the reasons for such positive prospects is continuous development IN Ethereum network. After the successful activation of Dencun in March, the platform developers are now focusing on the upcoming Pectra update.
This tough fork is expected to further improve the network, making transaction processing more productive and cheaper. These constant changes they position network as the preferred host for decentralized finance (DeFi) and meme coin activities.
In addition to platform-related factors, the U.S. Securities and Exchange Commission (SEC) recently approved the listing of all Ethereum exchange-traded funds (ETFs).
The agency has not yet clarified its position on the status of ETH. This will change, however, with the approval of all S-1 registration forms for cash ETFs. Analysts believe the second most valuable coin would gain much-needed transparency if these forms were given approval.
Feature image from DALLE, chart from TradingView
