Investors are accumulating Ethereum en masse amid what could become a return to bullish sentiment for cryptocurrency. Ethereum currently sits around $3,170, with its price having been volatile over the past seven days.
Amid this price volatility, on-chain data revealed an accumulation trend from Ether investors over the week. Additionally, transaction data showed an uptick in ETH whale movements to and from exchanges, with recent market events. indicating a transformation in the price of the crypto asset.
Ethereum sees significant accumulation as investors stock up
Ethereum now finds itself at a fundamental crossroads that could see its price rise in the new week and beyond. This fundamental catalyst for a price surge came from the recent entry of Spot Ether ETFs into the Asian market.
Regulators in Hong Kong I gave the green light to launch Spot Ethereum ETFs as well as Spot Bitcoin ETFs in the country, prompting investors to make strategic ETH moves in light of an incoming price surge.
In particular, on-chain data from IntoTheBlock shows a pattern of strategic accumulation from ETH investors, with over $500 million worth of ETH leaving centralized exchanges over the past week. Interestingly, this increase in movements marks the highest weekly exchange outflow recorded on the Ethereum network since February.
Half a billion $ETH was removed from CEXs this week, the highest since February pic.twitter.com/rwvftXjiOz
– Intotheblock (@intotheblock) April 19, 2024
When investors withdraw cryptocurrencies from exchanges, it usually means they are looking to hold them for the long term. This behavior shows that these investors are confident that the price of ETH will increase in the near future.
Similarly, data from whale transaction tracker Whale Alerts shows a slight increase in ETH whale transactions over the week, with whale exits from exchanges outpacing inflows.
🚨 🚨 10,119 #ETH (31,855,489 USD) transferred from #Binance to an unknown wallethttps://t.co/OKoF8E5Q4Z
– Whale Alert (@whale_alert) April 20, 2024
Total crypto market cap currently at $2.322 trillion. Chart: TradingView
What's next for ether?
Despite the outflows of capital from the stock exchanges, a simultaneous sale of the stock exchanges brought the price below $3,000 during the week to bottom at $2,878. However, the currency has since reversed upward and is showing signs of bullish momentum. At the time of writing, Ethereum is trading at $3,180 and is up 4% in the last 24 hours.
The fundamentals surrounding Ethereum indicate consistent price growth over the weeks as bulls look to break the $3,200 price hurdle. An example of such catalysts is a new bill aimed at legitimizing stablecoins in the United States. As the blockchain network with the largest stablecoin market, Ethereum is ready to benefit clear positive regulation regarding stablecoins.
As the US SEC continues to hesitate on approval of Spot Ethereum ETFs in the country, this investment class is expected to launch at the end of April in Hong Kong. Ethereum ETFs respond to Asian market signals growing institutional interest in altcoins all over the world. This, in turn, could lead the Ethereum price to surpass its current yearly high of $4,066.
Featured image from Pexels, chart from TradingView
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