Ethereum (ETH) has recently garnered significant attention after experiencing a substantial rally over the past month. However, this surge encountered a hurdle around the $2,100 mark last Friday, creating a triple-top pattern and prompting a reversal in its upward trajectory.
Despite this temporary setback, the Ethereum market has witnessed a noteworthy trend in institutional interest, a phenomenon that has become more pronounced in the month of November 2023. According to Woominkyu, an analyst at Cryptoquant, a leading crypto analytics firm, institutional holdings of Ethereum have seen an unprecedented surge. This surge in institutional interest coincides with Ethereum’s price stabilization in the range of $1,800 to $1,900.
Woominkyu highlighted this development in a post, stating, “The surge in institutional Ethereum holdings signals a growing interest from institutional investors. It reflects their strong belief in Ethereum’s long-term value and the market’s potential for growth.”
Institutional investors appear drawn to Ethereum not only due to its recent price stability and potential approval of a spot ETF but also because of the technical advancements, including the much-anticipated Ethereum 2.0 upgrades and enhanced smart contract functionalities.
Notably, recent reports reveal that investors have migrated over $30 million in ether and stablecoins to Blast, a new Ethereum Layer 2 network. This influx underscores the growing demand for Layer 2 solutions that address speed, cost, and scalability issues. The protocol natively participates in Ethereum staking, with staking yields passed back to users and decentralized applications on the Layer 2 network.
Interestingly, insights from onchain analytics firm Glassnode further suggest that whales, particularly addresses with 10,000 or more Ethereum, have been on an accumulation spree for nine consecutive days—a trend not witnessed in the past nine months. Consistent buying pressure among whales is often interpreted as a bullish signal for Ethereum’s future price action.
Notably, Ali Martinez, a prominent cryptocurrency analyst, recently emphasized Ethereum’s recent achievement in surpassing the crucial resistance zone spanning from $1,982 to $2,044. According to him, this breakthrough led to a notable acquisition, with 1.67 million wallets collectively securing an impressive 38.7 million ETH. According to him, this achievement, coupled with minimal resistance ahead and solid support below, positions Ethereum favourably to reach new yearly highs.
That said, Ethereum’s resilience in the face of market fluctuations, coupled with growing support for Layer 2 solutions, positions Ethereum for continued growth and adoption, which could positively impact price in the coming months. Ether was trading at $2,292 at press time after a 0.66% drop over the past 24 hours.