Ethereum (ETH) price has jumped 43.88% in the past 30 days, showing strong momentum. The decreasing supply of ETH on exchanges suggests that holders are becoming more confident, moving their tokens to long-term storage.
At the same time, whales are stepping in and accumulating more ETH, adding to the bullish sentiment. With the EMA patterns also sloping positively, the market seems to be gearing up for an interesting phase.
ETH supply on exchanges is decreasing
Between November 3 and November 18, the supply of Ethereum on exchanges increased significantly, rising from 12.2 million to 12.7 million.
This bullish trend indicated a growing accumulation of ETH on platforms where it can be easily sold or traded. Such behavior often reflects bearish sentiment, as users may be preparing to liquidate their holdings in response to market uncertainty or price expectations.
ETH balance on exchanges. Source: Glassnode
The drop in ETH supply on exchanges, which fell to 12.6 million on December 1, signals a possible shift in sentiment. When users withdraw ETH from exchanges, it suggests a lower likelihood of selling.
This movement is often considered bullish as it implies that holders are opting for long-term storage. This could be an early sign of growing confidence in the price of ETH.
Whales are accumulating ETH again
Ethereum whales began accumulating again in late November, with a surge in activity beginning on November 20. This accumulation trend is significant as it reflects renewed interest from large holders who have the potential to influence the market.
Such behavior often attracts the attention of market participants, as whale actions can indicate strategic moves based on future price expectations.
Addresses with Balance >= 1,000 ETH. Source: Glassnode
Tracking ETH whales is crucial because their holdings and trading behavior can significantly impact the market. When the number of whales increases, as seen with the surge from 5,535 on November 20 to 5,580, its highest level since October 13, it suggests strong confidence among large players.
This accumulation could be bullish for the price of Ethereum, as whales tend to hold long-term positions, reducing circulating supply and creating upward pressure on prices.
ETH Price Prediction: A Possible 10% Correction?
ETH’s EMA lines are currently bullish, with short-term averages positioned above the long-term ones. However, the price falling below the shorter EMA suggests a loss of immediate momentum.
This signals caution as it could indicate a weakening of the uptrend if the price does not recover quickly.
ETH Price Analysis. Source: TradingView
If ETH’s uptrend regains momentum, it could test key resistance levels at $3,688 and $3,763. Breaking these points could push ETH’s price towards $4,000, a price not seen since December 2021, signaling a strong bullish reversal.
On the other hand, if the short-term EMA lines fall further and a downtrend forms, ETH price could face a correction towards $3,255, representing a potential pullback of 10%.
The article Ethereum (ETH) rises 44% in 30 days; caution is advised was first seen on BeInCrypto Brasil.
