Large-scale investors, often called "whales," have significantly increased their Ethereum holdings over the past 24 hours, acquiring an additional 150,000 ETH valued at approximately $588 million. This major accumulation coincides with on-chain data showing a sharp decrease in the movement of older coins, suggesting a potential shift in market sentiment.
While Ethereum's price has struggled to maintain upward momentum in recent weeks, these underlying network activities indicate that some of the largest market participants are strengthening their positions, and long-term holders are showing increased conviction.
Key Takeaways
- Whale addresses holding over 10,000 ETH added 150,000 ETH to their balances in a single day.
- The movement of older Ethereum coins has dropped by 88% in three days, signaling increased holding behavior.
- A bullish divergence on the Relative Strength Index (RSI) suggests selling pressure may be weakening.
- Ethereum faces critical resistance near $4,281, a key level that must be overcome to confirm a new uptrend.
Whales Increase Holdings Amid Price Consolidation
Despite a modest 2.1% price rebound over the past week, Ethereum has largely been trading sideways, failing to break out of its recent range. However, activity from its largest investors tells a different story. Data shows that addresses holding more than 10,000 ETH have been actively buying.
Their collective balance increased from 100.41 million to 100.56 million ETH in just 24 hours. This purchase of 150,000 ETH represents a significant capital injection, suggesting confidence among major players even as the broader market remains uncertain.
By the Numbers
$588 Million: The approximate US dollar value of the 150,000 ETH acquired by large holders in the last 24 hours.
This type of accumulation is often seen as a bullish precursor. When large investors buy during periods of price consolidation or slight downturns, it can build a stronger support base for the asset, potentially absorbing selling pressure and setting the stage for a future price increase.
Coin Dormancy Reaches Notable Highs
Adding to the bullish case is a dramatic slowdown in the movement of previously active Ethereum coins. An important on-chain metric, the Spent Coins Age Band, which tracks the volume of coins moving between wallets, has seen a steep decline.
Between October 22 and October 25, the volume of moved ETH plummeted from 346,000 to just 42,100—an 88% reduction in three days. This sharp drop indicates that both short-term and long-term holders are increasingly choosing to keep their assets stationary rather than selling or trading them.
What is Coin Dormancy?
High coin dormancy means fewer coins are circulating on the network. When investors hold onto their assets instead of moving them to exchanges to sell, it reduces the available supply and signals a belief that prices will rise in the future. This behavior is often interpreted as a sign of strong holder conviction.
Historically, a combination of rising whale accumulation and increased coin dormancy has created a stable foundation for price rallies. It suggests that while smaller traders may be hesitant, long-term believers and large-scale investors are doubling down on their positions.
Technical Indicators Signal a Potential Bottom
The on-chain data is supported by technical indicators that hint at a potential trend reversal. The Relative Strength Index (RSI), a momentum oscillator that measures the speed and change of price movements, has formed a bullish divergence.
Between late September and late October, Ethereum's price chart printed lower lows, but the RSI indicator formed higher lows during the same period. This divergence often signals that the downward momentum is weakening and that buyers may soon regain control.
"Similar, smaller divergences appeared on October 10 and October 17, both of which resulted in brief price bounces. The current setup, however, is backed by much stronger on-chain fundamentals, suggesting a more sustainable move could be forming."
While this technical signal is not a guarantee of a reversal, its alignment with the fundamental on-chain trends of whale buying and rising dormancy strengthens the argument that Ethereum may be preparing for its next major move upward.
The Key Price Levels to Watch
Despite the positive underlying metrics, Ethereum remains constrained by significant technical resistance levels that have halted previous recovery attempts. The path forward is clearly defined by the Fibonacci retracement levels drawn from its previous major swing.
Two critical hurdles stand in the way:
- $3,986 (0.382 Fibonacci level): The first major resistance zone.
- $4,281 (0.618 Fibonacci level): The most important level to overcome. This price point has rejected rally attempts on at least two recent occasions.
For market analysts, a definitive daily close above $4,281 is the confirmation signal they are waiting for. Such a move would represent a clear shift in market structure from bearish to bullish and could open the door to higher price targets, with the next logical stops being $4,491 and the psychological level of $4,954.
Conversely, if the current rebound fails and the price falls below the immediate support at $3,804, it could trigger a deeper correction toward the $3,509 level. For now, the combination of whale activity and holder conviction provides a stronger foundation for a potential breakout than seen in previous weeks.
