Ethereum Hovering Above $3,700 As Mega Whales Accumulate: $4,900 Incoming?

At spot rates, Ethereum prices have been edging lower, recently even retesting the immediate support at $3,700. Even though the coin is still hovering around this level, optimism is high that it will spike higher in the coming days.

Cementing this outlook, one analyst, citing on-chain events, notes that a bullish narrative may be unfolding. Pointing to the sharp increase in Ethereum addresses controlling over 10,000 ETH, the analyst is now convinced that investors are through with their distribution and are not accumulating, expecting more price gains.  

Glassnode data cited shows that the number of addresses controlling over 10,000 ETH has been on the uptrend since May 20. Notably, on this day, prices shot strongly, breaking above $3,300 and $3,700.

The uptick boosted sentiment, possibly explaining why whales are now accumulating and not opting to liquidate, accepting to be shaken off from their position following the recent correction from $3,900.

When writing, ETH is changing hands at around $3,700, up nearly 20% from May 2024 lows. From the daily chart, the coin is still within a bullish breakout formation after clearing two crucial resistances (now support) at $3,300 and $3,700.

Therefore, despite the retracement from $3,900, the uptrend remains. The coin, reading from the candlestick arrangement in the daily chart, will likely ease above $4,100 as buyers set their eyes on $4,900 or 2021 highs.

It is highly that these whales are institutions, most of whom are optimistic about what lies ahead and positioning themselves for the leg up. The sharp expansion in whale count means institutions are increasingly confident in the vast Ethereum ecosystem.

One reason for this positive outlook is the continuous development in the Ethereum network. After the successful activation of Dencun in March, platform developers are now focusing on the upcoming Pectra upgrade.

This hard fork is expected to further enhance the network, making transaction processing more efficient and cost-effective. These continuous developments are positioning the network as the preferred host for decentralized finance (DeFi) and meme coin activities.

Beyond platform-related factors, the United States Securities and Exchange Commission (SEC) recently approved the listing of all spot Ethereum exchange-traded funds (ETFs).

The agency is yet to clarify its position on the status of ETH. However, this will change with the approval of all S-1 registration forms for spot ETFs. Analysts believe the second most valuable coin would have received the much-needed clarity if these forms are given the go-ahead.