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Ethereum’s (ETH) market dynamics are shifting, hinting at a potential rebound amid increased buying activity from whales and retail investors. Recent data from decentralized exchanges (DEXs) suggests that accumulation is underway, but is this the beginning of a sustained rally?
Whales Lead Ethereum Accumulation
Ethereum’s DEX market flashed a bullish signal, particularly from whales, over the last 24 hours. Large investors accumulated $9.41 million worth of ETH, significantly surpassing the selling volume of $6.17 million. This positive disparity indicates growing confidence among major players.
Even within a shorter six-hour window, whale buying volume remained ahead at $1.73 million versus $1.60 million in sales, reinforcing bullish sentiment. While Smart Money (SM) and Small DEX Traders (SDTs) also leaned towards buying, their margins were narrower. SM recorded $1.77 million in purchases against $1.96 million in sales, reflecting cautious optimism. Meanwhile, SDTs showed net accumulation, purchasing $3.21 million worth of ETH compared to $2.34 million in sales.
These trends suggest that ETH may have found a bottom, though some traders question whether this is a relief bounce before another decline, as smaller traders continue to sell.
Ethereum’s Price Correlation and Historical Patterns
ETH’s price action aligns with historical market trends. The previous surge from late 2023 to early 2024 saw Ethereum rally 157.49% after bottoming out. Currently, ETH is forming a similar pattern near key moving averages, hinting at a potential upside of 228.2% if history repeats itself.
Moreover, on-chain data reinforces the bullish outlook. Over the past seven days, ETH’s total netflows rose to +88.89K ETH, with a 30-day increase of +47.35K ETH, signaling strong accumulation. However, a 24-hour netflow decline of -6.53K ETH indicates short-term uncertainty, possibly due to profit-taking.
Market Sentiment and Volatility Trends
Ethereum’s volatility has stabilized at 15.47% in the last 15 hours, down from a recent high of 81.61% on February 25. Historically, such dips in volatility have preceded major price movements, similar to Ethereum’s October 2023 rally.
With bullish catalysts like new Ethereum Foundation leadership, gas limit changes, and potential staking integration for a spot Ethereum ETF, ETH appears poised for a recovery. However, traders should stay vigilant, as volatility remains a key factor in Ethereum’s near-term price trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Binance Denies Dumping Bitcoin, ETH, or SOL Amid Market Manipulation Rumors
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
