Whale activity and a 79% surge in trading volume indicate a potential bullish momentum for Ethereum.
On-chain indicators remain mixed, but the bulls maintain a slight advantage in the long/short ratio.
I. Ethereum [ETH]
ICO participants initially received 150,000 ETH (now worth $389.7 million), which remained inactive for over two years before being deposited into Kraken, totaling 3,510 ETH ($9.12 million). This significant transaction signifies 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 focused on whether this whale movement will trigger a bullish trend.
Surge in Ethereum trading volume: Bullish signal?
At the time of writing, Ethereum’s trading volume has seen a sharp increase, surging by 79.30% in the past 24 hours to reach $28.21 billion. Such a surge usually indicates growing appetite among traders, which often leads to higher price volatility. Therefore, if buyers continue to dominate and the volume keeps increasing, it can drive the market higher. However, if the volume decreases without subsequent purchases, it may indicate hesitation and potentially result in a price decline.
On-chain indicators: Mixed signals for Ethereum
Examining on-chain indicators, AMBCrypto has identified mixed signals. Ethereum’s network growth rate remains neutral at 0.19%, indicating no significant influx of new users. However, the In the Money indicator, which shows the percentage of investors in profit, displays a bullish reading of 11.21%. This suggests that a considerable portion of Ethereum holders is still in a profitable state, which can alleviate selling pressure and support price stability. On the other hand, metrics such as concentration and large transactions show a neutral trend, indicating no significant changes in whale accumulation. Therefore, while the whale deposit in Kraken implies a resumption of market activity, it hasn’t sparked a massive shift in Ethereum’s on-chain dynamics.
Bulls hold the advantage
The long/short ratio slightly favors the bulls. As of September 23rd, 52.28% of traders hold long positions, while 47.72% are shorting the market. This slight majority indicates a preference for further price increase in Ethereum. If this ratio continues to favor the bulls, Ethereum may maintain its upward momentum.
Read more: Ethereum [ETH] price prediction for 2024-25
The recent whale activity and surge in trading volume indicate bullish potential for Ethereum. However, on-chain indicators remain mixed, indicating cautious market sentiment. The slight advantage in the long/short ratio provides the bulls with a slight edge, but broader market dynamics will ultimately determine the direction.