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The Ethereum valuation has decelerated — consistently failing to surpass the resistance range near $2,800 — over the previous weeks after having a vigorous start to May. The second-largest cryptocurrency aims to reproduce this impressive performance in the initial days of June to reclaim the sought-after $3,000 threshold in the forthcoming months.
Since giving up the $3,000 mark in early February, the ETH price has faced challenges in gaining sustained bullish momentum, reaching just above $2,700 on multiple occasions in recent weeks. Nevertheless, recent market insights indicate that the Ethereum valuation might be gearing up for an extended surge in the upcoming months.
What Insights Do Ether Whales Have?
In a post dated May 31 on the social media outlet X, the anonymous crypto analyst Darkfost offered an on-chain analysis of Ethereum’s price movement and investor mood. The market analyst noted that a significant on-chain signal that preceded a notable price surge for ETH in the past has been activated.
The key metric here is Ethereum’s Average Order Size on Binance, derived by dividing the total trading volume by the number of transactions on the largest cryptocurrency exchange globally (by trading volume). This measure provides insights into the types of traders — whether they are large institutional players or retail investors — that are predominant on a particular exchange.
According to this on-chain metric, Ethereum’s large-scale investors have re-entered the market, as evidenced by the whale orders on Binance since May 19. Darkfost noted that the chart below delivers “an instant snapshot of Ethereum’s sentiment and momentum on Binance, while integrating crucial market data on spot and futures activities, cumulative volumes, with moving averages comparison.”
Source: @Darkfost_Coc on X
The on-chain analyst added:
In summary, it’s a comprehensive signal, and today, it’s indicating something rare and potent because the last occurrence of this indicator shining like this was in December 2023, right before ETH surged from $2,200 to $4,000.
Darkfost also pointed out that whales are not consistently seeking a low entry point; they often position themselves early when broader trends begin to exhibit signs of strength. With the average orders on Binance primarily made by whales, it suggests that the Ethereum price could be preparing for another 80% movement in the following weeks.
Thus, Darkfost is of the opinion that May may have presented a significant entry window, which many large investors seemingly capitalized on.
Ethereum Price Overview
As of this moment, the valuation of Ethereum is approximately $2,537, showing a 0.5% rise within the last 24 hours.
The price of ETH on the daily time frame | Source: ETHUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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