The demand for Ethereum (ETH) among whale investors has surged in recent days, with on-chain data showing a significant increase in Ether holdings by large wallets. Over the past three days, wallets holding between 10k and 100k coins have added a total of 820 ETH units, valued at approximately $3.8 billion. This group of Ethereum holders now controls a massive 31 million ETH coins.
Is Ethereum Price Ready for Bull Rally?
The bullish momentum in Ethereum has been fueled by strong demand from institutional investors, particularly spot ETH ETF issuers. With a fully diluted valuation of around $554 billion, Ethereum will need to sustain a rally above $4,772 in the coming weeks to dispel any bearish sentiment in the midterm.
What’s the ETH Market Picture?
The Ethereum price action has been closely linked to Bitcoin’s performance, as traders anticipate further rate cuts from the Federal Reserve. As the price of Gold hits new all-time highs, Bitcoin is poised for exponential growth in the near future.
Why is Benjamin Cowen Bearish on ETH in the Midterm?
Crypto analyst Benjamin Cowen has issued a warning to traders, stating that the real altseason has yet to begin. Cowen predicts that Ethereum and other altcoins will continue to underperform compared to Bitcoin until early November, based on historical trends. Despite recent gains, Cowen expects the ETH price to retrace and potentially test the 21-week EMA. He cautions that even if Ethereum reaches $5k, it could still be vulnerable to a correction phase.
In conclusion, the demand for Ethereum among whale investors is on the rise, with large wallets adding significant amounts of ETH to their holdings. While bullish momentum continues to drive the price of Ethereum higher, analysts like Benjamin Cowen are warning of a potential retracement in the coming weeks. As the broader cryptocurrency market remains closely tied to Bitcoin’s performance, traders should remain cautious and monitor price movements closely.