Ethereum price ended March 2024 at $3,646.8, recording a modest growth of 11.8% for the month. Recent trends observed among ETH whale investors could set the pace for a strong start in April.
Ethereum price started strong in March 2024, but struggled to regain momentum after the Dencun upgrade introduced on March 13th. Recent trends indicate that the catalyst behind ETH price persistence appears to have turned bullish. What will the ETH price be in April 2024?
ETH Whales Are Buying Again After Dencun Upgrade Drop
In the first 12 days of March 2024, Ethereum rose 25% to reach a yearly high of $4,092. However, things took a turn for the worse around March 13th, just as the Ethereum development team rolled out his widely anticipated Dencun upgrade.
Strategic swing traders touting the news and large parties taking precautions to reduce the likelihood of network failure flooded the market, with a 13% increase within a week of the landmark network event. led to a decline.
However, trends in key market data indicate that investors have started to see a positive trend again over the past two weeks.
The Santiment chart below shows real-time changes in the ETH supply held by the top 10,000 holder addresses.
Since March 20th, Ethereum's top 10,000 wallets have acquired 860,000 ETH worth approximately $3.1 billion after offloading 30 million ETH in the week following the Dencun upgrade.
Although the 860,000 ETH is only a fraction of the amount that Whale initially sold in mid-March, continued acquisitions will likely help get off to a positive start towards April 2024, with the main There are two reasons.
First, whale investors have a large influence not only on the actions of other individual investors but also on price fluctuations. Whale's $3.1 billion acquisition in the past 10 days therefore sends a bullish signal to retail investors and potential new entrants that the ETH market is in a recovery phase after the market-wide decline experienced in late March. may be sent to.
Second, whale investors are known to have long investment horizons, so a significant portion of the $3.1 billion purchase price could be left out of the market in the short term.
These key factors could set the stage for Ethereum price to get off to a good start heading into April 2024.
Ethereum market supply decreases by $1.3 billion
Further supporting the bullish stance above, another important Ethereum on-chain indicator shows that the number of ETH coins that can be easily traded across exchanges is currently decreasing.
Cryptoquant's Exchange Reserve Index tracks the total amount of ETH coins investors currently have deposited on various cryptocurrency exchanges and trading platforms.
Since whale wallets started being purchased again on March 20th, crypto exchanges have seen a continuous decline in supply in the active ETH market.
As seen in the chart above, as of the close of trading on March 19th, investors had a total of 14.4 million ETH in their exchange-hosted wallets. However, as of this writing on April 1st, that number has now decreased by 363,000 ETH.
Valuing at the current price of approximately $3,560 per coin, this means over $1.3 billion of liquidity has been pulled from the ETH spot market in the past two weeks.
Following the iron law of demand, the significant, albeit temporary, reduction in ETH market supply puts Ethereum price in a prime position to enter an accelerated breakout during the next demand surge in April 2024. Become.
Ethereum (ETH) price prediction: $3,700 resistance looms large
Inferring from on-chain insights, Ethereum price is on track to enter a parabolic breakout above $4,000 in April 2024. But first, IntoTheBlock's global money in/out chart shows that the bulls face stiff short-term resistance at $3,700.
As shown below, the 9.8 million addresses that acquired 4.7 million ETH break even when the Ethereum price approaches the $3,676 area. If the majority of them choose to exit early, the rise in ETH price could be under significant downward pressure.
However, given the $3.1 billion in new acquisitions by whales and the $1.3 billion decrease in short-term market supply, ETH price is likely to break through the selling wall and reach new heights above the $4,000 area.
Conversely, if the crypto market bulls lose momentum, Ethereum bears could regain control if the ETH price falls below $3,200. However, as analyzed above, current market dynamics make this unlikely.
Furthermore, the 9.1 million addresses that purchased 7.7 million ETH at an average price of $3,484 may make aggressive defensive purchases to prevent a significant drop below $3,500.
