Ethereum accumulation wallets have witnessed a massive 65% surge since the beginning of the year, with a balance of 19 million ETH as of October 18.
In January, the total number of Ethereum in the addresses was about 11.5 million. The growth has been really impressive since then, with the total balance expected to rise to within 20 million by the end of the year.
Currently, Ethereum sells at $2,700 per asset, pushing the total worth of the cache to a region of around $80 billion. In context, it is no small funds that are kept locked away.
These addresses hold funds that rival the balance sheets of some of the biggest companies in the world. Notably, the significant rise started after the United States Securities and Exchange Commission (SEC) announced the approval of Ethereum ETFs.
The approval injected much-needed confidence into the market, tilting Ethereum from a token for tech lovers to a strong financial asset.
50,000 ETH moved into derivative exchanges
Last week, derivative exchanges took custody of 50,000 Ethereum worth about $132 million. Net flow, a metric that tracks deposits and withdrawals in the market turned positive. The signal shows there were more deposits than withdrawals of Ethereum in the market.
The shift could go in two different ways with one being that traders are open to selling, which could trigger selling pressure on the asset. One strategy to achieve this is to dump Ethereum through short positions or sell futures contracts at preset prices.
On the other hand, it could also mean optimism in the market. Ethereum traders might be involved in futures or margin trading, betting that the asset will continue to appreciate. Either way, heavy funds are involved in whichever way the asset decides to go.
Ethereum moves close to the critical resistance level
Ethereum has experienced a relative rise of 8% in a bullish week, putting its price above $2,600. In the past 30 days, its gain stands at 12.89%, pushing its trading volume at $17.06 billion.
However, there are a lot of underground ramblings about the asset. While it has gathered a strong momentum, not everyone is convinced of its sustainability.
Investors are wary of a potential pullback in the market, despite the surge the asset has enjoyed. This is due to the bearish sentiment that has enveloped the market.
Ethereum is moving close to its current $2,700 resistance level. This resistance level has been a stumbling block that has prevented the asset from moving upward over the last two months.
Despite this, analysts have opined that things could take a turn for good this time. This is because the RSI of the asset presently looks good as it is not in the overbought region yet. It means that this rally is not yet over, opening up just enough space for the asset to make its move.
Some analysts are convinced that the $2,700 resistance level could be broken, creating space for Ethereum to hit close to $2,850. This is due to its ascending triangle which shows a bullish signal.
However, despite the bullish momentum, the market is very delicate and resistance levels are not easily surmountable. Similarly, it is hard to ignore the trends.
Ethereum trading volume and market activities show traders are still betting on its future moves. Whether or not it clears the $2,700 resistance level is one event that will unfold in the coming days.