Yesterday, the price of Ethereum bounced back from its local low around $2,850, driven by a frenzy of shopping by a mysterious wallet that amassed a whopping 30,680 ETH in less than 24 hours, equivalent to over $92 million.
Purchases of this kind by whales indicate important signals for the evolution of the price action of the crypto-asset, which may now see strong bullish forecasts in the coming weeks.
Meanwhile, the macroeconomic landscape also appears to support risk-on assets, after yesterday’s CPI data showed inflation in line with market expectations. Let’s check all the details below.
Mysterious wallet buys 30,000 ETH and helps crypto bounce back from local lows
Yesterday, the market sentiment and short-term forecasts of Ethereum investors suddenly changed, after the cryptocurrency regained the crucial price level of $3,000, further strengthening the underlying support.
After contributing to the recovery of the crypto, which closed the day with a +5.23%, we see the hand of a mysterious wallet that has accumulated a fortune in ether. The whale in question received a whopping 30,680 ETH in a completely new address, with a current value of 92.5 million dollars.
Usually, monitoring the money flow of these subjects and their traders can help to get an idea of which direction the market should go and how the price forecast of an asset is developing.
We don’t know who is behind the identity of the wallet, but thanks to on-chain data we can easily observe how another address financed the loot with 7 clear transfers, each ranging from 5 to 23 million dollars in Ethereum.
These trades all took place between May 13 and 15, with the last one processed just 15 hours ago, showing a strong bullish bias.
The timing of the whale was impeccable: in fact, in the last 3 days, Ethereum recorded one of its lowest values in the last 3 months, indicating a bottom construction that could remain invalid for much longer.
Very interesting to note also how the wallet responsible for transfers also contains a large amount of coins for a total of 48 million dollars, divided between ETH, USDT and various altcoins.
Among the main holdings of this entity we see RDNR, IMX, GRT, UNI and LINK, with values ranging from $800,000 to $1.8 million.
Curiously the fact that yesterday, while moving 30,650 ETH to a new address, the same wallet also made a transfer of 1.4 billion STRK equivalent to 1.7 million dollars to another address, also fresh in age .
In addition to these 2 interconnected wallets, other whales also took advantage of yesterday’s discount to make purchases on the cryptocurrency market. As reported by “Whale Alert”, a user still has about 30,800 ETH from an unknown address to moved the Coinbase Institutional account.
Meanwhile, another individual accumulated about 10,000 ETH from Bitstamp, worth 29 million dollars.
Macro Data and Price Predictions for Ethereum: Bullish Restart on the Horizon After Wallet Issues?
It is important to underline how in addition to significant purchases of mysterious wallets, the price of Ethereum has been boosted by macro events that have strengthened the short and medium term forecasts of the asset.
Yesterday, the data for the United States Consumer Price Index (CPI) was released, which measures the trend of consumer prices in the United States as estimated by the Bureau of Labor Statistics.
As reported, the index shows a value of 3.4% in line with investors’ expectations, suggesting a possible reversal of the type of monetary policy adopted by the FED so far, with the likelihood of a first rate cut at September will significantly increase.
With inflation “under control,” the FED is more likely to move toward a more expansionary monetary policy, which could fuel speculative markets like stocks or cryptocurrencies.
At the same time, however, there are those who, like the founder of “3FResearch” Warren Pies, are not convinced of the change in perspective of the American central bank and are reluctant to believe that the weight of inflation is on the verge of disappearing.
As the researcher points out, the inflation of car insurance and housing accounted for about 78% of the core CPI, therefore it does not provide a comprehensive analysis framework.
According to his predictions, there is no disinflation on the way, so speculative markets will continue to flourish for a while.
Returning to the analysis of Ethereum prices, we can see how yesterday’s movement seems to have confirmed the formation of a solid local low, where bears have tried to break in a total of 4 times in the last 30 days without breaking. through the acquired barrier.
However, despite yesterday’s excellent performance, prices are still below the 50-period exponential moving average on the daily time frame, indicating that control of the situation is still in the hands of the short sellers.
The volumes are not strongly encouraging and the RSI remains in neutral territory.
Open interest slightly up to $8.3 billion gives hope for a near-term bullish restart, while the futures rate in positive territory continues to support bullish activity.
At the moment, we cannot say with certainty that the minimum of this quarterly cycle has just been touched, nor that Ethereum will immediately start pushing to new highs from now on.
The outlook for prices and the macro scenario certainly looks improved, but the path still hides some uncertainty. The approval of the Ethereum spot ETF could be what is needed to support a crypto rally and outperform Bitcoin.
For now, without considering the ETF factor, based on what has been analyzed, we can venture to make bullish predictions for the coming months, with Ethereum likely to reclaim $4,000 unless the overall market landscape changes
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
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