The Ethereum market is currently experiencing an exciting phase, with 97% of addresses in profit, a signal that historically often leads to sell-offs. However, strong buying activity from “whales” and positive forecasts from experts indicate that ETH may still maintain its growth momentum.
According to the latest report from analytics firm Sentora, the current 97% profit rate among Ethereum addresses resembles the situation before the significant correction in 2021. This is typically seen as a warning signal for potential selling pressure.
Nonetheless, many analysts maintain a positive outlook on ETH’s prospects in both the short and long term. Notable trader Lark Davis states that Ethereum needs to hold the price range of $3,800-$4,000 to continue its upward trend. He considers this area an important “accumulation zone” and a good buying opportunity for investors who missed the previous breakout.
CEO of JAN3, Samson Mow, offers an interesting explanation for the strong growth of the ETH/BTC pair. In his view, many investors are implementing a “rotation” strategy by converting Bitcoin into Ethereum to capitalize on price increases.
The expected scenario is that after driving up ETH prices, investors will sell to create a new holding layer, and then use the profits to buy back Bitcoin at a lower price. This could be a key factor driving ETH’s recent surge.
Ethereum’s breakout above $4,300 is not only driven by retail investors but also sees significant participation from “whales.” Notably, Arthur Hayes, the former CEO of BitMEX, transferred $8.4 million in cryptocurrency, including $6.35 million in ETH.
This action aligns with Hayes’s previous forecast that ETH could reach $10,000 in 2024, indicating his strong confidence in Ethereum’s long-term prospects.
Data from Lookonchain reveals that a “mysterious organization” has made extremely aggressive buying moves. Within a week, this organization purchased 221,166 ETH, totaling approximately $946.6 million.
Related: Ethereum Surpasses $4,200, Poised to Set New Highs
Interestingly, in just one day, they bought 49,533 ETH worth $212 million through major exchanges like FalconX, Galaxy Digital, and BitGo. The enormous scale of these transactions demonstrates the confidence of large institutions in Ethereum’s growth potential.
According to data from Arkham Intelligence, over the past two weeks, wallets linked to SharpLink Gaming have received more than $253 million through several large transactions valued between $13 million and $44.7 million.
Although the exact nature of these transactions is not yet clear, the scale and frequency suggest that significant investment or portfolio restructuring activities may be taking place within the Ethereum ecosystem.
The current Ethereum market is showing mixed signals. On one hand, the high percentage of profitable addresses creates potential selling pressure. On the other hand, the strong buying activity from whales and institutions reflects strong confidence in the long-term outlook.
Maintaining the support range of $3,800-$4,000, as Lark Davis points out, will be crucial for ETH’s next direction. If this level is held, Ethereum could continue its journey toward higher price levels in the near future.
