Large Ethereum (ETH) holders are returning to the market. In the context of market consolidation over the past week, key players seized the opportunity to aggressively accumulate ETH.
On-chain data shows increased whale holdings, while Ethereum ETFs recorded their first weekly net inflow in 8 weeks, signaling a significant change in sentiment.
ETH whales accumulating and ETF inflows suggest a strong price increase is imminent
According to on-chain data, the net cash flow of large ETH holders spiked in the past week. According to the on-chain data provider, this figure surged by 2,682% over the last 7 days.
A large holder of an asset is a whale address holding more than 0.1% of the circulating supply of that asset. The net cash flow index of large holders tracks the difference between the amount of coins these investors buy and sell over a specific period.
When the net cash flow of large holders spikes, those whale investors are intensifying their accumulation of coins. This accumulation trend indicates confidence in the future price increase of ETH, as large holders tend to act when they see value at the current price.
Adding to the bullish narrative, Ethereum ETFs recorded their first weekly net inflow after 8 weeks. According to SosoValue, the net cash flow into ETH ETFs reached $157.09 million during the period from April 21 to April 25, reversing an 8-week outflow streak totaling over $700 million.
With major companies re-entering the market, ETH is likely to increase even more in the near future.
ETH achieves bullish momentum
Technically, the positive Balance of Power (BoP) indicator of ETH highlights the recovery in demand for the leading altcoin. Currently, this figure is 0.31.
This indicator measures the buying and selling pressure of an asset. When its value is positive, buying pressure exceeds selling pressure. This indicates strength in ETH's price movements and signals further potential bullish momentum. If this occurs, ETH could recover back above $2,000 to trade at $2,027.
However, if market sentiment worsens, ETH could lose its recent gains and drop to $1,385.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.
