By Tom Blitzer
Key Insights:
- Ethereum holders flock to self-custody and DeFi, leading to a surge in accumulation by top addresses.
- Despite the bearish sentiment, ETH maintains a positive short-term outlook, poised for potential gains above the $1,900 resistance.
- Technical indicators signal a sustained bullish trend for ETH/USD, with potential for further advances in Ethereum’s price.
In the latest advancements in the Ethereum ecosystem, a striking pattern has emerged where Ethereum holders are shifting their assets towards self-custody and decentralized finance (DeFi) alternatives. As a consequence, the most substantial whale addresses within the network have experienced a noteworthy increase in the accumulation of ETH. As per Santiment’s data, the top 10 non-exchange addresses now possess an unprecedented total of 31.8 million ETH, equating to an amazing value of $59.47 billion.
Source: (Santiment)
These specific addresses, unrelated to digital currency platforms, have experienced a significant increase in their Ethereum (ETH) holdings. This accumulation underscores the growing enthusiasm among investors to manage their assets independently and actively engage in decentralized finance (DeFi) activities. The decentralized structure of Ethereum and the diverse array of DeFi opportunities accessible have played a substantial role in fostering this transition towards self-custody.
Ethereum price analysis
Ethereum’s current price analysis reveals a resurgence of bearish sentiment, marking the return of downward momentum. After notable advancements, ETH/USD is presently trading at $1,870.8, exhibiting a decline of 1.93%. This leading altcoin has been maintaining a sideways movement since the preceding day and is experiencing a slight retracement after reaching its peak for the week at $1,912.
Despite the ongoing correction, Ethereum maintains a positive short-term perspective, as it sustains a strong position above critical support thresholds, approximately $1,850. Encouragingly, indications suggest the potential for additional gains if buyers successfully generate sufficient momentum, propelling the ETH/USD pair beyond the resistance level at $1,900. Nonetheless, failure to surpass this barrier may result in Ethereum retracing toward the support mark at $1,800.
ETH/USD 4-hour chart: (TradingView)
When examining the hourly technical indicators, it becomes evident that the ETH/USD MACD line has recently sustained its bullish trend and is currently trading above 0. This means that purchasers still have enough momentum to fuel additional advances in the price of Ethereum. Due to a modest retreat, the RSI reading of 41.10 shows that the market is in a neutral area. The 20-EMA line is also trending lower than the 50-EMA line, indicating a likely bearish reversal. The 4-hour moving average is at $1,892, which is higher than the current Ethereum price.
Conclusion
In general, there has been a remarkable surge in Ethereum’s performance during the current week, indicating a potential for further growth as long as buyers maintain their dominance in the market. Nevertheless, the present technical signals propose that the ETH/USD pair may encounter certain obstacles at the $1,900 level, potentially leading to a corrective phase before resuming its bullish momentum.