Institutional investors are accumulating Ethereum at a rapid pace following SEC exchanges recent commit Spot Ethereum ETFs. Crypto analyst Ali Martinez noted that this accumulation trend has created buying pressure that could be a much-needed catalyst for Ethereum to break above $4,000.

According to Ali Martinez’s social media post, the number of Ethereum addresses holding more than 10,000 ETH tokens has increased by 3% over the past three weeks, indicating a positive trend among huge investors.

Whale cluster increases Ethereum buying pressure

Speculation about ETF approvals and growing institutional support helped fuel Ethereum’s price rally earlier this year. First price raise took place in February when multiple reports came out from the SEC potentially approving Spot Ethereum ETF applications following the approval of Spot Bitcoin ETFs.

This caused Ethereum’s price to raise by over 83% in a month to exceed $4,000 again for the first time in 2021. Similarly, court decisions from May, which increased the chances The approval of the Spot Ethereum ETF has pushed the ETH price above $3,000 again.

Now that the SEC finally approved of these spot ETF applications, institutional investors are taking the opportunity to load up their Ethereum wallets. According to Glassnode data, this accumulation, which has been ongoing for three weeks, has pushed the number of wallets holding over 10,000 ETH to exceed 975 and steadily approach 1,000 addresses. Moreover, the data shows that the number of ETH whale addresses has been steadily increasing over the past 30 days, with the latest data showing the addition of 15 whale addresses.

Number #Ethereum addresses with more than 10,000 addresses $ETH has increased by 3% in the last three weeks, signaling a significant raise in buying pressure! pic.twitter.com/7qq5HgGP37

— Ali (@ali_charts) June 9, 2024

On-chain data also shows that public sentiment towards ETH stabilized following the intense enthusiasm following the approval of the Spot Ethereum ETF. However, this did not stop the mass withdrawal from exchanges, which caused Ethereum to become rarer on centralized exchanges. This trend has now led to Ethereum balances on centralized exchanges falls below Bitcoin, even though Spot Bitcoin ETF wallets also accumulate Bitcoin. According to Glassnode dataless than 10.56% of the total Ethereum supply is currently on major exchanges.

ETH Price Predictions: What’s Next After Critical Buying Pressure?

With Ethereum whales doubling down, buying pressure has reached a tipping point. This raise in interest signals a lot bullish prospects for Ethereum prices in the coming months, although short-term fluctuations may occur.

At the time of writing, Ethereum is trading at $3,527 fell 3.83% in the last 24 hours. While the raise in buying pressure is a good start, bulls still have some work to do to push Ethereum’s price higher. The first major retaining wall is around $3,700, of which 1.82 million addresses contain 1.8 million ETH.

Featured image created with Dall.E, chart from Tradingview.com