Ethereum is 6.4% from its record high as whales buy and retail traders sell, keeping sentiment resistance low and momentum strong.
Whale accumulation and institutional inflows are fueling Ethereum’s rally while retail fear and disbelief continue to dominate sentiment.
Positive sentiment and low negative chatter are helping Ethereum push toward its all-time high despite ongoing retail sell pressure.
Ethereum is now only 6.4% away from its all-time high of $4,891, set on November 16, 2021. The rally has been fueled by strong buying from key stakeholders while retail traders continue selling. This unusual dynamic has reduced sentiment resistance, allowing Ethereum to climb higher.
Santiment data shows that traders’ fear and disbelief have not stopped prices from advancing. Historical patterns suggest that prices often move against retail sentiment, making this moment critical for market watchers.
Retail Fear Meets Whale Accumulation
From mid-February to late March, Ethereum’s price trended downward as negative sentiment dominated social media. Fear, Uncertainty, and Doubt (FUD) created strong selling pressure, keeping prices below $2,600.
However, accumulation by larger players began during this period. By late March, sentiment started improving, and the price climbed above $3,200. The upward shift was closely linked to stronger positive sentiment, indicated by yellow sentiment bands.
Source: Santiment
A brief correction was brought on by FOMO, or the fear of missing out, which was brought on by overconfidence in mid-April. This pattern demonstrated how strong price swings are typically preceded by extreme sentiment, whether it be excessively bullish or bearish.
Momentum Builds Toward Breakout
In late June, Ethereum crossed $4,000, and bullish sentiment rose steadily. This period marked a turning point. Moreover, the price surged above $4,600 in early August, showing how positive sentiment supported continued momentum. Historical data reveals that lower negative sentiment levels often coincide with sustained rallies.
Besides, institutional inflows into Ethereum and whale accumulation have provided additional market strength. Traders displaying skepticism during higher prices may be unknowingly fueling the rally by selling to stronger hands. Hence, sentiment resistance remains minimal as Ethereum approaches its historical peak.
Ethereum may short-term retest its all-time high if this trend persists. Traders must be wary of sentiment extremes, though, as they frequently result in corrections.
The post Ethereum Nears Record High as Whale Buying Defies Retail Selling appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
