Ethereum Whale Accumulation Signals Key Price Levels for Investment

Ethereum whale activity has surged with two wallets accumulating 4,500 ETH valued over $7 million. Despite facing unrealized losses, large investors are showing signs of long-term accumulation. On-chain data suggests a significant buy zone at $1,367 based on MVRV bands, indicating potential price recovery and market behaviour shifts. Analysts note a correlation with gold’s rising prices, leading to a cautious market stance.

Recent activity among Ethereum whales signals a significant accumulation trend. Two major wallets collectively withdrew 4,500 ETH, valued at over $7 million, from cryptocurrency exchanges. The first wallet, 0xd81E, holds 48,477 ETH, but despite this substantial holding, it faces unrealized losses of approximately $21 million. Simultaneously, another wallet, 0x3bd2, has re-entered the market with a withdrawal of 2,600 ETH from Binance, marking a considerable shift in investment behaviour.

The performance of Ethereum has faced challenges as whale activity increases. A notable correlation exists between Ethereum’s price movement and gold prices, which have surged to $3,472.15 per ounce. This inverse relationship indicates that as gold rises, Ethereum tends to fall, reflecting a current market trend favouring safety over risk. Analysts observe that Ethereum may be approaching oversold conditions, as indicated by the RSI, although the ETH/USD price chart has not yet confirmed this.

MVRV data from Glassnode suggests a critical accumulation point for Ethereum at $1,367. The current MVRV price is $1,588.30, but historically, the -1.0 standard deviation MVRV band has served as a significant buying opportunity. Past cycles show that price drops below this level lead to strong recoveries, with observed instances in late 2018 and mid-2022.

The intersection of whale accumulation and Ethereum’s MVRV positioning may herald a longer-term accumulation phase. Such trends suggest a historical pattern where large holders buy in when prices near $1,367. Current whale behaviour supports this narrative, with substantial withdrawals demonstrating long-term conviction, despite existing unrealized losses. Increased buyer interest from both whales and retail investors could emerge should the price approach $1,367, although maintaining levels above $1,500 could indicate active accumulation has already begun.