Recently, there was a transfer of 10,000 ETH worth approximately $24.93 million from the Gemini exchange to an unknown wallet. Such moves are not all that uncommon in the cryptocurrency sector, but they usually indicate the intentions of large investors.
These large investors are known as whales. Most of these transfers occur before major market activity, making them a useful tip for small investors and traders.
This article examines the consequences of such a trade. Also technical indicators that show the latest price of Ethereum and the possibility of an uptrend.
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Whale activity: a signal for investors?
The explanation for these variations can be determined by studying the movements of so-called “whales”. Whales have a significant impact on the further development of the virtual currency market.
Large trades in ETH could indicate that whales are stashing coins in case the price rises. Such behavior is usually considered bullish. They believe this purchase could signal that they are optimistic about the long-term growth of the Ethereum rate.
In this case, whale behavior can help you understand other market patterns. This allows analysts to predict future trends of other market participants.
The transfer of 10,000 ETH from Gemini to an unknown wallet is noteworthy. In the past, whenever large amounts of Ethereum were transferred from exchanges, it was shown that whales had no intention of selling their Ethereum.
This behavior is mainly associated with price optimism. It is generally questionable whether whales will sell assets in hopes of increasing their value. Therefore, $24.93 million worth of ETH in storage could indicate that institutional investors are bracing for the next surge.
Ethereum shows signs of recovery
Over the past 24 hours, Ethereum rose 2.29 percent to $2,523.56. Volume also surged by 32.25% to $13.34 billion. The latest whale trades brought the market cap to $303.84 billion. This shows strong investor interest in cryptocurrencies. This type of volume increase is a positive sign of growing confidence in Ethereum's price recovery among market participants.
Additionally, current metrics indicate that Ethereum’s fully diluted valuation (FDV) is roughly equal to its market cap of $303.87 billion. This agreement means that the market does not believe Ethereum's valuation will be as volatile compared to the current one. Therefore, cryptocurrencies are in the early stages of a widespread price rebound.
Ethereum's network is so robust that it has a total supply of 120.4 million ETH and an equal amount in circulation. The increase in demand for ETH is primarily driven by the increasing adoption of decentralized finance (DeFi) applications. So is the adoption of non-fungible tokens (NFTs) and Ethereum's move to proof-of-stake (PoS).
Ethereum technical analysis: bullish signals emerge
While the technical analysis itself is not surprising, as it is all about price movement, recent patterns on Ethereum's charts suggest promise. A descending wedge pattern has formed on the 4-hour chart and is generally considered a bullish reversal pattern.
Prices tend to fall, the lows and highs become closer together, establishing a so-called descending wedge, which can signal a possible breakout to the upside.
In the chart above, we can see that Ether price has broken above the upper bound of this wedge pattern. If this breakout does indeed validate with volume, momentum, and enough upside, Ethereum could target the next resistance zone at $2,720.
This price target is in line with historical highs and is an important level for further bullish confirmation. This breakout indicates that Ethereum price has more or less reversed the bearish trend seen over the past few weeks and could lead to an upside move.
The Awesome Oscillator (AO) on the chart also shows a slight positive change. If the histogram bar turns green, it could mean bullish momentum is building here, as this change could signal a reduction in Ethereum’s downtrend.
Traders will look forward to confirmation as room for further confirmation and continued increase in positive momentum strengthens the bullish outlook.
