Ethereum, the world’s second largest cryptocurrency, recorded a 4% increase. The price showed significant strength by reclaiming the $2,000 level. As the market gains momentum, Ethereum’s performance stands out and attracts the attention of both investors and analysts. The accumulation of whales is also a significant factor in this rise.
Whale Accumulation and Network Growth in Ethereum
Leading on-chain data provider Santiment reported a significant increase in network growth and ongoing whale accumulation in the Ethereum network. The top 200 Ethereum wallets currently hold approximately 62,760 ETH worth $124.1 billion.
Throughout the past year, these leading addresses have indicated a significant upward trend since November 21, 2022, by increasing their ETH holdings by 30.3%. In particular, Ethereum witnessed an increase in wallet activity with the creation of 94,700 new ETH wallets since July.
Increasing Demand and Fluctuations in Derivatives: Ethereum’s Market Dynamics
Analysts, including CryptoQuant’s Maarten Regterschot, highlight the notable trend of systemic buying indicators in Ethereum’s derivatives market. Ethereum futures witnessed a significant influx of $700 million, indicating accumulation during a specific time period.
This increased demand for Ethereum derivatives is in line with positive sentiment surrounding the altcoin. Santiment’s data also reveals a decrease of approximately 20% in ETH token supply on exchanges in the past six months.
The decrease in the current supply of ETH on exchanges indicates a decrease in selling pressure and sets the stage for potential price increases. At the same time, the increased activity in ETH wallets contributes to the optimistic outlook. These developments indicate that the formation of new wallets during a price uptrend is a bullish indicator for the asset.
Can Ethereum Reach $3,000?
As Ethereum surpasses the $2,000 level while maintaining its upward momentum, investors are anticipating a potential breakthrough towards the $3,000 level. The important resistance level for Ethereum is located at $2,130.
The $2,000 level continues to serve as a strong support that sustains Ethereum’s upward trend. At the time of writing, Ethereum is trading at $3,067.
