Ethereum Floats Higher As Whales Accumulate: Why Are Bulls Weak?

Dalmas Ngetich•Tuesday, April 23, 2024•2 min read

Ethereum is moving higher and struggling for momentum per the price action in the daily chart. There were hints of strength over the weekend, but buying pressure failed to materialize. Thus far, there is strong rejection at around the $3,300 level and the 20-day moving average. Technically, the uptrend remains. However, buyers must strongly reject these attempts of lower lows from early April.

Currently, Ethereum is stable in the past 24 hours and week. Though the upside momentum appears to be building, sellers are firm. The April 22 bar, for instance, has a long upper wick, suggesting intense liquidation pressure. Nonetheless, the uptick in participation to $10 billion—which is still lower than average—is a net positive. Any uptick in price above $3,300 could thrust the coin towards $3,700 and back into the range.

Ethereum daily chart for April 23

The following Ethereum news events are noteworthy:

The Tron co-founder, Justin Sun, has been accumulating Ethereum over the past few weeks. On-chain data shows that Sun now owns over $405 million of ETH, bought via Binance and multiple DEXes. That the co-founder is staking ETH is huge for sentiment, and shows confidence of what lies ahead.
Besides this, whales appear to be moving USDT to Ethereum. Recently, Tether Limited, the issuer of USDT, minted $318 million of the stablecoin and moved it to several addresses on Ethereum. Typically, the inflow of stablecoins to Ethereum is considered a bullish development that could push demand.