As Ethereum moves in an upward trajectory, its momentum appears well supported. Its move towards $4,600 levels saw big investors scooping up all the loose ETH that the small traders were letting go of, thus clearing the way for a potential record-breaking move.
Whales seize the opportunity
According to crypto sentiment analytics firm Santiment, retail traders are currently exhibiting an unprecedented level of ‘FUD,’ i.e., fear, uncertainty, and doubt, which is arising out of social media discussions, making them more skeptical. Traders are willing to let go, even as prices climb higher. However, this apprehension from retail traders has had an unexpected upside. As they unload their holdings, “key stakeholders” are swooping in to accumulate the “loose coins”. The coordinated buying amidst the selling has helped cushion ETH from pushback and is clearing the way for further advances.
Pic Courtesy: Santiment on X.com
Santiment emphasizes that this dynamic has produced “very little sentiment resistance”. Moreover, this situation has made the market climate unusually favorable for Ether to break past previous milestones and potentially hit new all-time highs.
Also read: Ethereum supply dries up on wintermute’s OTC desk, founder reveals
Short-term holders sell, while long-term investors hold on
Complementing this on-chain sentiment insight, data from Glassnode paints a similar picture. It shows that short-term holders are currently the ones selling, in anticipation of a pullback, while long-term holders are holding ground.
This combination of the steady accumulation by whales and institutional players, combined with retail hesitation, would mean that the rally is being driven from the top down. At the time of reporting, Ethereum was trading near $4,633 levels with gains of over 8% in the last 24 hours.
OKX Partner Ted Willows, in an X post, spoke of how ETH was breaking out of its 4-year sideways range, and the last time it had done so, it managed to pump 20x in just 1 year. With its path for breakout cleared, Ethereum is inching closer to its November 2021 all-time high of $4,878.