Ethereum Whales Return as ETFs End Eight-Week Outflow Streak

Ethereum whales are re-entering the market, accumulating substantial ETH. On-chain data shows a significant increase in whale holdings, and ETH-backed ETFs experienced their first inflow in eight weeks, signalling a possible price surge. ETH’s Balance of Power is positive, but potential market downturns could lead to price declines.

Ethereum is witnessing a resurgence among its considerable holders, also known as whales. This comes in the wake of last week’s market consolidation, where many whales took the opportunity to pile on ETH. Recent on-chain data shows an increase in whale holdings, alongside Ethereum-based ETFs experiencing their first positive net inflow in eight weeks, pointing towards a shift in market sentiment.

Whale activity has surged, with a staggering 2,682% increase in netflow observed within the past week. Here, large holders comprise addresses that possess over 0.1% of the total circulating supply of ETH. The netflow metric is essentially the difference between the volume of coins purchased versus those sold by these significant investors over a defined timeframe. A marked uptick in this netflow indicates that major investors believe in Ethereum’s potential at current price points.

Moreover, in a positive turn, ETH-backed ETFs saw their first weekly net inflow during this recent timeframe, with SosoValue reporting inflows of approximately $157.09 million from April 21 to April 25. This development helps reverse a dismal eight-week period that experienced outflows exceeding $700 million. The re-entry of these substantial market players suggests ETH might be gearing up for a price increase soon.

From a technical perspective, Ethereum’s Balance of Power (BoP) has noted a positive reading of 0.31, which reflects growing buyer interest. The BoP is an indicator used to gauge the balance between buying and selling pressures within an asset. A positive value suggests that buyers are dominating the market, signalling potential strength in ETH’s price trajectory. If this strength holds, ETH could bounce back over the $2,000 mark, possibly reaching around $2,027.

Nevertheless, one should remain cautious. Should sentiment in the wider market deteriorate, there’s a chance ETH could lose recent gains, possibly dropping back to around $1,385, which would be quite the setback. Investors are advised to keep a watchful eye on market trends and developments.