- According to insights from LookOnChain, a mysterious Ethereum whale recently bought nearly 16,000 ETH worth over $26 million.
- According to several analysts on X, the cryptocurrency could be gearing up for a massive move to the upside soon.
- A break above $1,665 could send the cryptocurrency soaring past $1,700, while a dip below $1,580 might cause sentiment to turn bearish.
Ethereum could be on the verge of a major breakout, according to new developments. A recent move from a mysterious crypto whale has added fuel to the fires of speculation, and the second-largest cryptocurrency on the market could be ready for a major upswing. According to insights from LookOnChain, this Ethereum whale bought nearly 16,000 ETH worth over $26 million amid Bitcoin’s attempts to break above $85,000
Ethereum is showing signs of a rebound attempt after underperforming compared to Bitcoin over the last few months. Here are some insights as to what happened, as well as why it matters for Ethereum investors.
16,000 ETH Transferred Off-Exchange
According to a 14 April post from blockchain analytics firm LookOnChain, a mysterious whale moved 15,953 ETH from OKX to Aave. This ETH was worth about $26.16 million at the time of the transaction and wasn’t just left to sit idle.
Instead, the whale used these funds as collateral on Aave to borrow $15.4 million in USDT. The said USDT was then sent back to OKX in a layered move that combines elements of DeFi lending and liquidity management. While there is no indication of what this USDT was used for, it is worth noting that whales do not just move funds without reason.
This looks like an accumulation strategy, and this whale just might know something the rest of the market doesn’t. This whale borrowing against the ETH and not selling it outright means that they believe that the cryptocurrency’s prices will go higher. This behavior reduces selling pressure on exchanges and helps to stabilize prices.
Analysts Get Bullish
The whale’s behavior hasn’t gone unnoticed by analysts. According to several of them on Twitter (now X), the cryptocurrency could be gearing up for a massive move to the upside soon. One of these analysts, Merlijn the Trader, pointed out a bullish candlestick on Ethereum’s weekly chart.
According to Merlijn, the cryptocurrency has been trading in a bullish pennant after years of consolidation. Both of these factors combined are major setups for an explosion in price. Another renowned analyst, Ali Martinez, said the same about Ethereum, but on the hourly chart.
Per the analyst’s speculation, Ethereum could be hinting at a possible 17% price move to the upside soon. With all of the above analyses, Ethereum’s ability to rally and stay above $1,700–$1,800 in the next two weeks could create a strong bottoming pattern, which might give the long-term bulls a solid entry point. Per Merlijn’s analyses, Ethereum could do more than the 17% price increase pointed out by Ali.
The cryptocurrency has enough juice to run up to a high of around $8,000. At the time of writing, Ethereum continues to trade within a tight range between $1,580 and $1,665, with resistance being strongest around $1,675.
On the flip side, the strongest support levels sit at around $1,580, $1,500, and $1,420. A break above $1,665 could send the cryptocurrency soaring past $1,700, while a dip below $1,580 might cause sentiment to turn bearish.
