Ethereum closed the month of March 2024 with a price of $3,646,8.8, registering a modest growth rate for the period. Recent trends among ETH Whale investors may set the tone for a good start in April.
The Ethereum price began March 2024 with a positive start, but lost momentum following the Dencun Upgrade on March 13th. Recently, the trend shows that the catalyst is behind the ETH The price sticking seems to have turned bullish. How will ETH react in April 2020?
After Dencun upgrade ETH buyers are back to buying after the recent sell-off
Ethereum achieved a 25% gain in the 12 first days of March, 2024. The new peak for this year was $4,092. Around March 13, the Ethereum development team launched the highly-anticipated Dencun Upgrade.
The market was flooded with swing traders and major stakeholders who took precautionary steps to avoid possible network interruptions. Within a week, the network’s landmark event saw a 13 percent drop.
However, important market data shows that investor sentiment has started to improve over the last couple of weeks.
Santiment’s chart shows the changes in ETH held by addresses of top 10,000 holders.
Ethereum Top 10,000 wallets acquired 860,000 Ethereum worth $3.1 Billion since March 20, after offloading 30 million Ethereum in the weeks following Dencun Upgrade.
Although the 860,000 ETH represents a tiny fraction of what was initially purchased by the whales in mid-March of this year, it is the acquisition that will likely lead to a successful start of April 2024.
First, the whales have significant influence over price movements and retail investor behavior. Thus, whales’ acquisition of $3.1billion in the last 10 days may send a positive signal to new investors that the ETH markets are now recovering after the massive selloffs experienced during the second half of March.
As whale investors tend to invest for a long time, they could hold back a substantial portion of this $3.1billion purchase from the marketplace in the near term.
These factors may set up the Ethereum price for a successful start to April 20,24.
Ethereum Market Supply has Dropped by $1.3Billion
Another critical Ethereum on-chain metric confirms the above bullish stance, showing that the amount of ETH readily available for trading across exchanges is now declining.
Cryptoquant’s exchange reserves metric measures the amount of ETH that has been deposited by investors across different crypto exchanges, trading platforms and other exchanges.
Crypto exchanges are seeing a steady decline in the active ETH supply since March 20 when whale wallets started buying again.
According to the above chart, at the end of 19th March investors owned a combined total of 14.4 millions ETH on exchange-hosted wallets. As of April 1, this figure had fallen by 363,000.
If you take the price of ETH at $3.560 per coin as an example, this means that over $1.3 Billion worth of liquid has been withdrawn from the ETH spot market over the past two weeks.
This massive fall in ETH supply is a temporary decline, but it puts Ethereum prices in a position where they can accelerate their breakout. next Demand will surge by April 2024.
Ethereum (ETH) Price Forecast: A $3,700 Resistance Looms Large
According to the insights from the blockchain, Ethereum is set for a breakout parabolic above $4,000 by April 2024. First, IntoTheBlock’s global chart of in/out-of-money shows that the bulls are facing a strong short term resistance around $3700.
Using the chart below, 4.7 Million ETH acquired by 9.8 millions addresses will be able to break even once Ethereum prices reach $3,676. The ETH price could be negatively affected if a large number of these addresses decide to leave early.
The steep drop in the short-term supply of $1.3B and the new acquisitions by whales totaling $3.1B will push the ETH to new highs.
In the event that the cryptocurrency bull market rally loses steam, Ethereum bears might regain power once the ETH price falls below $3,200. This is unlikely, given the market dynamics as described above.
Also, 9.1 millions addresses which bought 7.7 Million ETH for an average of $3.484 each, could take defensive measures to protect themselves from a big drop below $3.500.
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Source: crypto.news
