Ethereum (ETH) is attracting attention from savvy investors, according to data posted by the market analyst Lookonchain. Earlier today, Metalpha Technology Holding Limited, a digital assets wealth management company based in Hong Kong, withdrew another 6,000 ETH tokens worth $18.67 million from the Kraken exchange, as per transactions flagged today by the analyst.
Deeper on-chain analysis shows that five days ago, the platform also withdrew a significant amount of Ethereum tokens from the exchange, indicating renewed ETH demand from large investors.
Established in 2021 and headquartered in Hong Kong, Metalpha is a global crypto-focused wealth management company that offers investing and wealth management services powered by a comprehensive institutional-grade platform.
The Implications of Metalpha’s ETH Accumulation
Metalpha’s move to execute massive Ether withdrawals over the past recent days highlights a substantial ETH accumulation strategy by whales, reflecting an important market dynamic shift towards revamped purchasing frenzy and a signal of a potential ETH price pump ahead.
Currently, ETH trades at the $3,100 range, where it has been consolidating in sideways movement after climbing above the $3k level since the beginning of the new year. A major catalyst behind the consolidation mood is the increased ETH selling pressure from American investors, as identified by the Coinbase Premium Gap (yesterday), which dropped to a negative territory last seen 10 months ago. This drop showed that the digital asset is unlikely to break out above the $3,300 resistance mark due to the current heavy profit-taking activity embarked by US investors.
However, Metalpha’s massive ETH acquisitions suggest a resurgent appetite among large investors, signifying that big whales are pulling off ETH tokens from exchanges and stacking them into their private wallets. Yesterday, BlackRock and Bitmine purchased ETH tokens valued at $149 million and $105 million, respectively, indicating continued enthusiasm in Ether even as certain on-chain indicators project near-term price weakness.
ETH Bullish Pattern Signals Potential Climbs To $4,000
Today, ETH currently trades at $3,086, down 0.4% over the past 24 hours, a level that it has maintained in the last two days after it failed to hold above the $3,000 mark on Tuesday, Jan.6. This drop reflects a wider cooldown in the larger crypto market after a strong rally initiated amid the ushering in of the new year. Similar to Ether, which currently displays signs of short-term selling pressure, Bitcoin also retreats its moves, indicated by its price that currently hovers at $90,684, up 0.1% in the last 24 hours.
Despite the recent downturn, an ascending triangle pattern is forming in the ETH’s trading pattern, according to analysis flagged by crypto market analyst Ali Martinez. While the ascending triangle setup indicates a possible market uptrend, ETH remains above its 25-day Exponential Moving Average, providing its support during the current pullback. As identified by the analyst, this bullish triangle formation could trigger a 30% gain from the current ETH price, meaning the asset to surge towards the $4,000 level soon, backed by increasing buying pressure.
