Ethereum has risen above the $2,000 mark again. The Ethereum price is benefiting from a broader recovery in the crypto market and is trading around $2,054, an increase of about 8 percent since Wednesday. Interestingly, the price increase is accompanied by clear signals of new accumulation by large investors.
Whales are buying millions of ETH
According to blockchain analysis platform Lookonchain, wallet address 0xAb59 purchased more than $14.5 million worth of Ethereum. In total, this amounted to 7,008 ETH at an average price of $2,079.
In addition, another large wallet (0x166f) quickly obtained 20,000 ETH, worth approximately $38 million, from exchanges such as Binance and Deribit. Large withdrawals from exchanges are often seen as a sign that investors want to hold their coins for a longer period of time.
Valuation shifts out of ‘highly undervalued’ territory
According to data from Santiment, Ethereum’s so-called MVRV ratio has increased significantly. This indicator compares the market value with the realized value and provides insight into the average profit or loss position of holders.
The MVRV is currently around -5.5 percent. This means that Ethereum is still slightly undervalued, but no longer in the extremely low zone it was previously in. The recent rise signals a market that is rebalancing after a period of weakness.
American demand is picking up
There are also signals from the United States of increasing purchasing pressure. The Ethereum Coinbase Premium Index, measured by CryptoQuant, is positive for the first time since early January.
This index measures the price difference between Ethereum on Coinbase and Binance. A positive value means ETH is trading at a premium on Coinbase, popular with US investors. This generally indicates stronger demand from the US, including institutional parties.
Historically, previous moments when the premium became positive were often followed by a further price increase.
Leveraged trading also benefits
The revival is also visible in the derivatives market. According to data from OnchainLens, a 25x long position of trader Machi is now more than $760,000 plus.
At the same time, another major trader known as “pension-usdt.eth” closed recent long positions in both Ethereum and Bitcoin with a realized profit of approximately $1.16 million.
Can the momentum continue?
For the time being, sentiment around Ethereum clearly looks more positive than in recent weeks. The combination of whale accumulation, an improving valuation and rising US demand points to renewed confidence.
We will see in the coming days to weeks whether the rise above 2,000 dollars is also the start of a longer recovery.
Source: https://newsbit.nl/ethereum-stijgt-boven-2-000-grote-beleggers-kopen-bij/
