Ethereum Faces Massive Whale Accumulation, $2K Breakout Looming?

Ethereum (ETH) price is in the spotlight as the top altcoin in the digital space. Its market outlook has improved in the past seven days.

Ethereum price has registered over a 5% increase in the past week, with the shift recorded over a 24-hour period. The resurgence might account for the massive accumulation recorded among large holders in the ecosystem.

Whales’ Aggressive Accumulation Signals Possible Bullish Ethereum Rally

According to an update from Lookonchain, ETH whales are in a frenzy over the asset’s accumulation. Over two hours, whales displayed a strong buying interest. They are even borrowing to accumulate the ETH coin.

A whale with the Wallet address “0xDdb4” borrowed 3.44 million USD from Aave, the decentralized lending platform. The wallet owner spent the entire amount to purchase 1,856 ETH in a leveraged bet.

Similarly, another whale with the Wallet address “0xf84d” borrowed 1.64 million USDC but spent 2.34 million USDC to acquire 1,259 ETH.

The move indicates that this whale had 700,000 USDC but needed to borrow to make the massive purchase.

The Ethereum whales’ action is bullish, as they were willing to make a leveraged bet to gain ETH exposure. It signals that the whales potentially anticipate a significant Ethereum price rise or a bullish rally. Therefore, they are accumulating the top altcoin to benefit from it.

Exchange Flows Highlights Bullish Sentiment

In another development, a new wallet “0x69D0” withdrew 2,250 ETH, valued at approximately $4.12 million, from Binance. The decision to withdraw from a known crypto exchange wallet often indicates intent to hold rather than sell the asset.

These actions are typically bullish as they show whales’ confidence in ETH. The whales are buying not just with their funds but also by taking risks through borrowed funds. It shows their firm conviction in Ethereum’s future outlook.

Meanwhile, CryptoQuant, a leading on-chain platform, has highlighted a record outflow of Ethereum ETH from Binance. The outflow is significantly higher on Binance than in other crypto exchanges.

CryptoQuant noted that less ETH is being withdrawn from all exchanges combined. It suggests investors’ confidence dipped.

Amid this outlook, Binance alone accounted for 49% of the total outflows. It indicates users are moving their holdings from the exchange to wallets. It could also mean that these users are staking or utilizing DeFi tools to hold their Ethereum, another bullish signal.

The uptick in Binance reveals that users are choosing the exchange to convert their Ethereum into fiat currency. Though not necessarily bullish for the industry, for Binance, it shows the exchange’s growing role as an exit point for Ethereum holders.

Ethereum Price Momentum Builds Toward Key Resistance

In the meantime, the Ethereum price has broken the $1,800 resistance. It could retest the $2,000 level. As of this writing, Ethereum price has surged by 5.53% to $1,855.99 in the last 24 hours.

Investors remain active in the space, pushing trading volume up by 14% to $16.32 billion within the same time frame.

The increase in price and trading volume signals that Ethereum is likely gearing up for a massive breakout. Interestingly, some experts have predicted that if the crypto market maintains its bullish trend, the ETH price could flip $2,000 with a potential breakout from here.