- Whales increased their Ethereum holdings last week.
- ETH’s daily chart was green and the indicators looked bullish.
Ethereum (ETH) Investors showed tremendous confidence in the token as they continued to stockpile at press time.
This accumulation occurred just days before Ethereum’s upcoming major Dencun upgrade, scheduled for February 8th. Will Dencun Upgrade Help Spark a New Rally for ETH?
Is Ethereum under high buying pressure?
$500 million worth of Ethereum tokens was withdrawn This only happens on exchanges in the last 7 days. In fact, considering withdrawals over the past 30 days, that number comes to $1.2 billion.
This clearly suggested that investors were hoarding ETH. However, to confirm this notion, AMBCrypto checked data from Santiment and found that there have been multiple spikes in exchange outflows of ETH over the past week.
At press time, there were over 10.7 million ETH on exchanges and over 122.3 million ETH outside of exchanges.
Source: Santiment
Whales were also actively trading Ethereum. This is evident from the high number of whale trades last week.
The high number of whale transactions may be partly due to larger players purchasing ETH. You can see that the supply of top addresses has increased over the past few days.
Ethereum’s Dencun upgrade has been released
Ethereum accumulation increased at a time when the Dencun upgrade was expected. This is the next major update for Ethereum after the Shapella upgrade.
The upgrade will be a step forward towards ETH’s “proto-danksharding” functionality.
proto-danksharding aims to lower transaction costs in layer 2 blockchains by creating new partitions for data called “blobs”.
Since this is a major update, it may have a positive impact on the price action of ETH. Renowned cryptocurrency analyst Michael Van De Poppe recently posted a tweet hinting at the same outcome.
Two game plans I’m looking at. $ETH.
The Dencun upgrade will be live on the final testnet in the coming days.
It is most likely to have a positive impact on the Ethereum price, but we would like to see a reversal of 0.06 or a clearing of the low for confirmation. pic.twitter.com/oVPqKJpnJ5
— Michael van de Poppe (@CryptoMichNL) February 5, 2024
To find out what supports the potential for a bullish rally other than high accumulations, AMBCrypto looked at: ETHThis is the daily chart. Our analysis also shows a strong upside potential.
In particular, the MACD showed a bullish crossover and the Money Flow Index (MFI) recorded a sharp rise.
read Ethereum (ETH) price prediction 2024-25
Chaikin Money Flow (CMF) also rose, indicating the potential for a bullish rally.
According to CoinMarketCapOver the past 24 hours, ETH is up 1.3% and at press time is trading at $2,360.35, with a market capitalization of over $283 billion.
Source: TradingView