- Whales increased their Ethereum holdings last week.
- The daily chart of ETH was green and the indicator looked bullish.
Ethereum [ETH] Investors had shown tremendous confidence in the token and continued to stockpile at the time of this article.
This accumulation occurred just days before Ethereum’s next major Dencun upgrade scheduled for February 8th. Will the Dencun upgrade help trigger a new bull run in ETH?
Is there a lot of buying pressure for Ethereum?
$500 million worth of Ethereum tokens has been withdrawn Even just the interactions in the past seven days. In fact, if you factor in withdrawals over the past 30 days, that number is as high as his $1.2 billion.
This clearly suggested that investors were hoarding ETH. However, to confirm this idea, AMBCrypto checked Santiment data, which revealed that ETH exchange outflows have spiked multiple times in the last week.
At the time of writing, there were over 10.7 million ETH on exchanges and over 122.3 million ETH outside exchanges.
Whales were also actively trading Ethereum. This was evident from the high number of whale trades last week.
The high number of whale transactions may be due in part to the large companies that were purchasing ETH. This is suggested by the increasing supply of top addresses over the past few days.
Ethereum’s Dencun upgrade is here
Ethereum accumulation increased at a time when we were expecting an upgrade of Dencun. This is Ethereum’s next major update after the Shapella upgrade.
This upgrade is a step forward towards ETH’s “protodunk sharding” functionality.
Protodunk sharding aims to reduce the cost of transactions in layer 2 blockchains by creating new partitioned areas for data called “blobs.”
Since this is a major update, it may have a positive impact on the price trend of ETH. Popular crypto analyst Michael Van de Poppe also recently posted a tweet hinting at the same outcome.
Two game plans I have in mind. $ETH.
The Dencun upgrade will be in the final testnet in the next few days.
Perhaps it will have a positive impact on the price of Ethereum, but I would rather see a reversal at 0.06 for confirmation or a sweep of the low. pic.twitter.com/oVPqKJpnJ5
— Michael van de Poppe (@CryptoMichNL) February 5, 2024
To see what else supports the possibility of a bullish rally other than high accumulation, AMBCrypto checked EthereumThis is a daily chart. The analysis also revealed that an uptrend is likely.
In particular, the MACD showed a bullish crossover and the Money Flow Index (MFI) recorded a sharp rise.
read ethereum [ETH] price prediction 2024-25
Chaikin Money Flow (CMF) also rose, indicating a possible bull market.
according to coin market capETH has risen 1.3% in the past 24 hours and is trading at $2,360.35 at the time of writing, giving it a market cap of over $283 billion.