- Whale activity and a 79% surge in trading volume suggested bullish momentum for Ethereum.
- On-chain indicators were mixed, but bulls had a slight edge in the long/short ratio.
not Ethereum (ETH) An ICO participant who initially received 150,000 ETH (currently worth $389.7 million) made a significant move by depositing 3,510 ETH (currently worth $9.12 million) to Kraken after being inactive for over two years.
This massive transaction suggests growing confidence in the future of Ethereum. With Ethereum trading at $2,656.39, up 3.02% at the time of writing, the market is now looking to see if this whale move will generate bullish momentum.
Ethereum Trading Volume Surges: A Bullish Sign?
Ethereum trading volume has increased dramatically, rising 79.30% over the last 24 hours to $28.21 billion at the time of writing.
These spikes are usually a sign of increased demand from traders, which often leads to higher price volatility.
So if buyers continue to dominate, the market can move higher as volume increases. However, if volume decreases without follow-up buying, this can indicate hesitation, potentially leading to a price decline.
Source: Coinglass
On-chain metrics: Mixed signals for Ethereum
Looking at on-chain indicators, AMBCrypto found a number of signals.
Ethereum’s net network growth rate remains neutral at 0.19%, with no significant influx of new users.
But the In the Money indicator, a key indicator that shows how many investors are currently making profits, showed a bullish reading of 11.21%.
This suggests that a significant number of Ethereum holders are generating profits, which could reduce selling pressure and support price stability.
On the other hand, indicators such as concentration and large transactions also show a neutral trend with no significant change in whale accumulation.
So while whale deposits on Kraken suggest that market activity has resumed, it hasn’t yet caused a dramatic shift in Ethereum’s on-chain dynamics.
Source: IntoTheBlock
The bull has the upper hand
The long/short ratio is slightly tilted towards the bullish side. As of September 23, 52.28% of traders were long, while 47.72% were shorting the market.
This slight majority indicates that traders are leaning towards a higher Ethereum price. If the ratio continues to favor the bulls, Ethereum can maintain its upward momentum.
Source: Coinglass
Read our Ethereum (ETH) Price Prediction 2024-25
Ethereum’s recent whale activity and rapid increase in trading volume suggest a bullish potential, but mixed on-chain indicators show the market remains cautious.
The long/short ratio gives a slight edge to bulls, but ultimately, direction is determined by broader market dynamics.