- Whales increased their Ethereum holdings last week.
- ETH’s daily chart was green, and indicators looked bullish.
Ethereum [ETH] investors were showing immense confidence in the token at press time, as they kept stockpiling.
This accumulation happened only days before Ethereum’s upcoming major Dencun upgrade, which is scheduled for the 8th of February. Will the Dencun upgrade help trigger a fresh bull rally for ETH?
Is Ethereum’s buying pressure high?
Ethereum tokens worth $500 million were withdrawn from exchanges in the last seven days alone. In fact, the number is as high as $1.2 billion, if withdrawals from the last 30 days are to be considered.
This clearly suggested that investors were stockpiling ETH. But to confirm this notion, AMBCrypto checked Santiment’s data, which revealed that ETH’s exchange outflow spiked multiple times in the last week.
At press time, there were over 10.7 million ETH on exchanges, while there were more than 122.3 million ETH outside of exchanges.
Whales were also actively trading Ethereum. This was evident from the high number of whale transaction counts last week.
The high whale transaction counts could be in part due to the bigger players who were buying ETH, as suggested by the rise in the supply held by the top addresses over the last few days.
Ethereum’s Dencun upgrade is here
Ethereum’s accumulation increased at a time when it was expecting the Dencun upgrade. This is the next major update to Ethereum after the Shapella upgrade.
The upgrade will be a step forward towards ETH’s “proto-danksharding” feature.
By creating a new, divided area for data called “blobs,” proto-danksharding aims to lower the cost of transactions for Layer-2 blockchains.
Since this is a major update, it might as well have a positive impact on ETH’s price action. Michael Van De Poppe, a popular crypto analyst, recently posted a tweet, hinting at the same outcome.
Two gameplans I’d be looking at with $ETH.
The Dencun upgrade is taking place on the final testnet in the next few days.
Most likely it will have a positive impact on the price of Ethereum, but I’d rather want to see a flip of 0.06 for confirmation or a sweep of the lows. pic.twitter.com/oVPqKJpnJ5
— Michaël van de Poppe (@CryptoMichNL) February 5, 2024
To see what else was supporting the possibility of a bull rally apart from high accumulation, AMBCrypto checked ETH’s daily chart. Our analysis also revealed that the possibility of an uptrend was high.
Notably, the MACD displayed a bullish crossover, while the Money Flow Index (MFI) registered a sharp uptick.
Read Ethereum’s [ETH] Price Prediction 2024-25
Its Chaikin Money Flow (CMF) also rose, indicating a possible bull rally.
According to CoinMarketCap, in the last 24 hours, ETH was up by 1.3%, and at press time, it was trading at $2,360.35 with a market capitalization of over $283 billion.