Ethereum (ETH) continued its upward trajectory on Thursday, testing the significant resistance level of $4,500. This movement follows a surge in purchasing activity among large investors, commonly referred to as “whales,” and accumulation addresses. Currently, Ethereum’s price sits at $4,480.
In the past two weeks, Ethereum whales have purchased over 840,000 ETH, reflecting a decisive increase in buying pressure after a recent price dip. According to data from CryptoQuant, investors holding between 10,000 and 100,000 ETH have collectively amassed this substantial amount since September 18, 2023. The consistent buying from these whales during price corrections often signals confidence in a price recovery.
Record Accumulation Amid Price Fluctuations
In addition to whale activity, wallets classified as accumulation addresses—those with no selling activity—have set a new record, adding 5.6 million ETH to their balances in September. This marks the third consecutive month of record accumulation, showcasing persistent demand even amid price declines.
Institutional interest in Ethereum has also seen a resurgence. Data from SoSoValue indicates that US spot ETH exchange-traded funds recorded net inflows for three consecutive days, totaling $755.2 million as of Wednesday. This renewed institutional demand further supports the bullish sentiment surrounding ETH.
Despite the upward price movement, some whales have begun to realize profits, as highlighted by data from Lookonchain. The market’s open interest has remained relatively subdued, indicating that the recent price gains are predominantly driven by spot buying rather than leveraged trades. A notable increase of 280,000 ETH in open interest on Thursday suggests a shift toward risk-on sentiment, according to Coinglass.
Technical Analysis and Resistance Levels
Ethereum has recently crossed above the 50-day Simple Moving Average and is currently confronting the $4,500 resistance. This level has been pivotal over the past two months, and overcoming it could pave the way for a further advance toward $4,835.
If Ethereum faces rejection at this resistance level, traders will be closely monitoring the $4,100 support and the 100-day SMA as critical areas to watch. The Relative Strength Index indicates bullish momentum, hovering above neutral levels, while the Stochastic Oscillator is nearing overbought territory.
The past 24 hours saw approximately $129.9 million in futures liquidations, with short positions accounting for $106.2 million. This volatility underscores the ongoing shifting dynamics within the Ethereum market as traders respond to rapid price movements.
As Ethereum continues to navigate these challenges, the growing whale activity and institutional interest provide a promising backdrop for potential recovery and growth in the coming weeks.