2019 Price Pattern And Whales Continue Accumulating
Ethereum’s Price Movements
Ethereum [ETH], the second-largest cryptocurrency, is currently mirroring its 2019 price pattern, displaying bullish potential as market sentiment shifts. The price action on the ETH/USD pair reveals an ascending wedge, a formation last seen in 2019. What sets this cycle apart is that the wedge’s higher lows are ten times larger than in 2019. During the earlier period, Ethereum’s price fell below the wedge just before the Federal Reserve's rate cut. A similar scenario is unfolding in 2024, leading analysts to anticipate a liquidity capture below the wedge before a reversal upward towards late Q4 2024 or early Q1 2025.
Accumulation Reflects Growing Confidence
Ethereum whales have been instrumental in driving ETH's bullish momentum. Since 2019, these large-scale holders have steadily increased their Ethereum holdings, with this trend gaining speed after the Shanghai upgrade in 2023. Currently, whales control over 43% of Ethereum's circulating supply, while retail investors hold around 48%. This accumulation highlights that key market players are anticipating a future price increase for Ethereum, fueling the overall market's optimistic outlook for ETH's long-term growth.
A Shift Towards Cold Storage
A closer look at Ethereum’s exchange netflows suggests reduced selling pressure, further boosting bullish sentiment. Data from CryptoQuant indicates that netflows on derivative exchanges have surpassed negative 40,000 ETH, meaning significant amounts of ETH are being withdrawn from exchanges and stored in cold wallets. This withdrawal indicates that traders are preparing for potential long-term gains, signaling that the recent price dip is likely a temporary correction, setting the stage for an upcoming price rally.
Ethereum ETF Developments: Mixed Yet Optimistic
Despite some fluctuations in Ethereum Exchange-Traded Funds (ETFs), particularly negative net-flows in Grayscale’s ETHE, there are promising signs from other ETFs. For example, ETH ETFs from Fidelity saw positive inflows over the past 24 hours. The overall sentiment surrounding Ethereum ETFs remains optimistic, and these financial products could provide strong support for Ethereum’s future price growth as investor confidence builds in the cryptocurrency’s long-term viability.
Whales and Patterns Suggest Strong Future for Ethereum
As Ethereum follows its 2019 price pattern and whales continue accumulating, the outlook for ETH in the final months of 2024 remains positive. If the price temporarily breaks below the ascending wedge, it could offer liquidity before reversing upwards. Traders should remain vigilant, as a prolonged break below the wedge might necessitate strategy adjustments. In both the crypto and Forex markets, Ethereum's price behavior can provide crucial insights. Forex traders should pay close attention to ETH movements, as Ethereum's bullish trends may influence broader market sentiment. The potential for Ethereum to strengthen its value could create volatility in Forex markets, presenting opportunities for traders to benefit from price shifts.