- Ethereum whales continue to accumulate, signaling confidence in future price growth.
- The upcoming ETH spot ETF approval and regulatory support could fuel further bullish momentum.
Ethereum is facing mixed market signals as large holders continue to increase their holdings while the price action remains uncertain. Recent on-chain data reveals that wallets holding between 10,000 and 100,000 ETH have increased their balance by 24% over the past year.
This development signifies that wealthy investors project a good future for Ethereum during this downturn in the market. Despite a 10% dip in the price of ETH within the last 24 hours to a price of $2,408.32, the analysts found the market at a turning point.
Historically, February has been a difficult month for Ethereum and a warning has been issued that the asset may be facing a further correction. The monthly chart has been showing a 27.70% fall for ETH.
The last red February Ethereum has seen has been followed by a 54% March dip. Still, the whales’ accumulation behavior could be an indication that the smart money is making preparations for a reversal in the near term.
Ethereum Spot ETF Add Optimism
One of the reasons behind the optimism lies in the anticipation of approval of Ethereum’s spot ETF. Regulatory discussion and the political support of the crypto space also enhance Ethereum’s standing in the stablecoin space. Ethereum currently has 56% of the stablecoin capitalization, further solidifying its position.
CryptoQuant CEO Ki Young Ju explained how an ETH spot ETF could trigger an “altseason” among large caps. Former US President Donald Trump has been working on easing crypto regulations, and with that comes the likelihood that further companies will start tapping into Ethereum stablecoins and smart contracts in 2025.
This regulatory update could be a primary driver of bullish strength behind ETH, especially with institutional investors further gaining confidence in the asset.
Analysts closely follow the price movements at this critical juncture, with Ethereum approaching the price basis of the accumulation of addresses. The price at which the whales purchase may be a good support zone and induce a price reversal. Following the patterns of the last few years, ETH may be approaching a turning point within the next few weeks.
Can ETH Hit $8,000 Before Long-Term Holders Exit?
While a few expect Ethereum to experience a powerful breakout, there are also those who take a different view. Ethereum’s prospects of beating the cycle have been questioned by analyst EGRAG CRYPTO.
He also explained that the Layer 2 solutions have sucked a lot of the value of Ethereum away and that the remaining Layer 1 options will be that much more interesting. In his opinion, Ethereum’s top might be at the $6,000-$8,000 mark, but a reversal of the long-holding investors might be the aftermath.
On the technical side of things, a few of the traders observe a tendency that Ethereum may be copying previous price cycles. Ethereum’s last price movements exhibit an 182-day cycle of large price events. If the tendency follows a similar route, ETH may be subject to a large price swing within the next 12 days, similar to previous instances.
💡 Trying to address the DOGE dilemma, I also looked at ETH to assess its current situation.
And here too, we have an incredible 50-50 scenario. 🙂The crash from three weeks ago happened exactly 182 days after the crash in August 2024. Measuring another 182 days back from… https://t.co/YJx10maUCH pic.twitter.com/2kegiEKQMU
— Master Kenobi (@btc_MasterPlan) February 23, 2025