Ethereum’s value has dropped recently as the cryptocurrency teeters about the $3,700 mark. Though there is a small drop, analysts predict a possible increase in the next days, hence optimism rules the market.
Based on on-chain statistics, a prominent analyst notes a hopeful trend might be starting. They highlight a notable rise in the count of Ethereum addresses with more over 10,000 ETH, signifying a change from distribution to accumulation among investors expected for more price rises.
Glassnode’s data supports this finding: starting May 20, the count of addresses containing significant ETH has been steadily rising. Fascinatingly, this upward tendency matched a significant price spike on the same day that drove Ethereum above important resistance levels at $3,300 and $3,700.
Ethereum’s Rise Defies Recent Dip
Though a recent fall from the $3,900 mark, the upward trend seems to have inspired big investors, or “whales,” to keep buying ETH rather than selling their holdings. Ethereum is trading over $3,700 at the time of posting, an almost 20% rise from its lows in May 2024. Technical study indicates the bitcoin is staying in a bullish breakout pattern after removing important resistance levels.
Though there is a fall from $3,900, market mood is still positive; signs indicate to a possible rise beyond $4,100, therefore orienting sights on the $4,900 mark or the highs projected in 2021.
Many of these accumulating entities are thought to be institutions, projecting confidence in Ethereum’s future and therefore orienting themselves. The increasing institutional interest highlights rising faith in Ethereum’s whole ecosystem.
Constant improvements inside the ETH network are main forces behind this encouraging attitude. After Dencun’s successful March activation, developers are now preparing for the forthcoming Pectra upgrade, expected to improve transaction processing efficiency and lower costs, so confirming ETH position as a leading platform for decentralized finance (DeFi) and meme coin activities.
Apart from advancements connected to networks, the United States Securities and Exchange Commission’s (SEC) recent approval of the listing of spot ETH exchange-traded funds (ETFs) has given the market even more hope. Although the SEC’s opinion on Ethereum’s legal status is yet unknown, the approval of spot ETFs marks a path towards regulatory clarity, which analysts feel could strengthen Ethereum’s standing in the cryptocurrency market.
