Heavy Accumulation by Top Ethereum Addresses: Will it Trigger an ETH Price Rally?

• Whales are reportedly accumulating Ethereum (ETH) despite its lack of major catalysts since the 2022 Merge. 

• Analysts have also observed that there is a negative sentiment in the market which could take the price down to $1,700. 

Ethereum (ETH) has for the past few months failed to make any significant jump as the price keenly follows the movement of Bitcoin. As of press time, the asset was trading at $1,852.76. Market data shows that Ethereum has only made 5 percent gains in the past 90 days. Its 30 days price growth is down by 1.7 percent. In the last seven days, it has only managed a marginal surge of 1 percent. 

According to on-chain data, crypto investors are anticipating a bullish run for Ethereum as top-tier whale wallets aggressively accumulate the asset. It is reported that the size and accumulation of its top 10 addresses have been increasing for the past five years. Just recently, it was observed that the ownership of the top ten largest addresses has increased from 11.2 percent to 34.6 percent of Ethereum. According to Santiment’s report, the increase of 27.86 million ETH is currently worth around $51.6 billion.

One main reason for Ethereum’s inability to make any significant surge since the Merge event in September 2022 is a lack of catalyst. The asset has only been following the movement of Bitcoin since January 2023. A careful look at the technical chart of the asset shows that Ethereum is forming a descending triangle pattern on the daily chart between July 14 and August 8. According to analysts, the pattern is characterized by a series of lower highs and steady lows. This means there is a negative market sentiment. 

More on Ethereum (ETH) Price Analysis

Ethereum currently has a support level of $1,792.43. Analysts believe that the asset could hit this support when it closes below $1,823. The 200-day Simple Moving Average is at $1,788 and is said to provide additional support. Any movement below this point could send the price to the technical target shown by the current chart pattern at $1,700. This means there could be a 7.2 percent fall from the current price. 

Since the asset is trading above this level as of press time, it could likely target its resistance level of $1,912.31. 

Earlier this year, Ben Ritchie, the managing director of Digital Capital Management predicted that Ethereum could hit $2,500 by December 2023. However, the asset could take a U-turn to trade at $900 before this surge. 

Ethereum continues to dominate the market as the leading smart contract platform, driving a range of innovative projects within its ecosystem. However, recent market challenges have sparked investor concern and may limit the price of Ethereum to reach $2,500 this year. Despite this, Ethereum’s low annual inflation rate is expected to keep the price stable and above $900, even if future market disruptions occur.

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Interestingly, Jeremy Cheah, the Associate Professor of Decentralised Finance at Nottingham Trent University predicted that Ethereum would fall to $1000 by December. His reason is linked to a lack of safeguards for consumers. According to him, the asset would hit $2,500 in 2025. 

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