Journalist
Posted:
- Binance and Coinbase whales bought $12.98M Ethereum as Golem Network deposits $13.26M ETH to exchanges.
- Ethereum price could hit $6K if it continues to mirror Bitcoin’s pattern.
Recent Ethereum [ETH] transactions showed a contrasting pattern between the actions of individual whales and institutional entities like Golem Network. Golem Network appears to be on the selling end of the spectrum.
Golem transferred 4,850 ETH, worth approximately $13.26 million, to an exchange. This follows a larger movement from their multi-signature wallets, suggesting an intent to liquidate or redistribute assets.
Conversely, ETH whales have been notably active, purchasing Ethereum with transactions amounting to $12.98 million.
This surge in buying by prominent holders signals robust bullish sentiment, potentially aiming to capitalize on anticipated price increases.
Source: Arkham
These contrasting activities offer insight into the current Ethereum market. Whales buying large amounts may show confidence in Ethereum’s near-term value rise.
However, Golem’s substantial offloading could temper bullish views, potentially increasing volatility or pushing prices down.
With such significant yet opposite actions, the market’s complexity grows, highlighting the dual forces at play in the crypto ecosystem.
How is ETH mirroring BTC?
A further look into the market structures of Bitcoin and Ethereum revealed interesting parallels, especially when comparing Bitcoin’s 3rd cycle to Ethereum’s ongoing 4th cycle.
Historically, Bitcoin’s 3rd cycle showed consolidation and breakout patterns, resulting in substantial price surges after these phases.
At the time of writing, Ethereum was showing similar behavior within a converging triangle pattern, suggesting a potential breakout. If Ethereum continues to follow Bitcoin’s 3rd cycle, it might breach $6,000.
This suggests Ethereum could see a shift in dynamics after the recent sharp fall.
This relies on the replication of Bitcoin’s price action post-consolidation from previous cycles, where exponential growth phases were preceded by tight price consolidations, similar to what Ethereum shows now.
Source: X
Conversely, relying on historical replication for prediction is insecure, as it could fail to maintain support.
This may deviate from the expected path, leading to stagnation or a drop below the ascending wedge pattern instead of the anticipated surge.
This would temper expectations from a straightforward bullish trajectory based on past market cycles alone, highlighting the inherent volatility and unpredictability of cryptocurrency markets.
It becomes necessary to monitor both support and resistance thresholds closely as Ethereum approaches key price levels during a broader market correction.
