Ethereum wallets holding at least 10,000 Ether are accumulating the cryptocurrency at a rate faster than before the 95% rally in mid-2022, according to recent data. This surge in accumulation by "mega whales," combined with technical indicators showing a bull pennant formation, suggests a potential breakout targeting $3,400 by August. The present accumulation phase has largely gone unnoticed. If history is any guide, an even stronger bull run for Ethereum may be on the horizon.
Whale Accumulation Exceeds Previous Rally Buildup
Ethereum mega-whales have boosted their holdings by 9.31%, nearly doubling the accumulation rate observed from May – September 2022. During this time, Ethereum’s price pumped from around $1,000 to over $1,950, a 95% pump. The quiet storm is building as we speak. It might presage a much larger price spike that the market has not yet fully priced in.
"This silent buildup could be a precursor to a significant upside move that may not be priced in yet, if the past patterns play out again." - [no specific author mentioned, source: Cointelegraph]
Over that same period from November 2020 to January 2021, Ethereum whale holdings increased by 4%. In tandem, Ethereum was off to the races shooting from $460 to $1,220. These historical trends imply that lots of buildup by the big ones usually happens right before a major price increase.
"Large holders began accumulating well before the broader market caught on in both instances." - [no specific author mentioned, source: Cointelegraph]
Technical Analysis Points to $3,400 Target
Ether (ETH), meanwhile, ETH/USD is consolidating within a textbook bull pennant pattern on the daily chart, signaling an imminent breakout toward $3,400. Ethereum’s price action has gone through periods of calm waters over the past few weeks. This points to the reality that today’s dark, quiet accumulation phase is going on under the radar. This would be a hugely strong consolidation, especially after the failed breakout and the failed breakdown that have both occurred within Ethereum’s structure.
Ethereum cost basis distribution heatmap, with the $2,500-$2,536 range standing out as an unprecedented accumulation zone over the past few months. Almost 3.45 million ETH have their cost basis in the current range, indicating it as a major buyer support level.
"Such a heavy concentration of long-term holders near $2,500 reinforces the idea that Ether’s current consolidation phase is forming a solid foundation for the next leg up." - [no specific author mentioned, source: Cointelegraph]
Supply Dynamics and Price Predictions
ETH circulating supply recovery strongest it’s been since June 2020. Together, these three changes represent a dramatic reversal from the downtrend we’ve observed over the past several decades. Some analysts are even calling for Ethereum to reach $5,000 by year’s end. This boom will be driven by continued adoption and a strong market environment.
