Is Ethereum (ETH) Price Bounce Likely as Whale Scoops $242M ETH?

Although the sentiment surrounding Ethereum has been bearish, the recent 7% rally in price on Wednesday indicates that the outlook is changing.

The price of Ethereum (ETH) continues to struggle after a 7% move on Wednesday followed by a near-4% pullback. As of March 21, ETH price trades today at $1,985, with hopes of recovery as a whale buys $242 million worth of ether.

Let’s explore Ethereum price prediction and if ETH’s value will bounce from here.

Is Ethereum Price Bounce Likely as Whale Scoops $242M ETH?

Although the sentiment surrounding Ethereum has been bearish, the recent 7% rally in price on Wednesday indicates that the outlook is changing. Considering that one whale accumulated 150 million ETH worth roughly $270 million. This move indicates that high networth investors or institutions are bullish on the second largest cryptocurrency in the world.

Such bold ETH accumulation from long-term investors often signals strength and is followed a bullish reversal.

According to data from Santiment, the daily active addresses that peaked at 717K on January 25, slipped to 367K as of March 17, signaling lack of interest from investors. However, in the past four days this metric has spiked to 463K, noting a 26% uptick, indicating growing interest after Wednesday’s minor rally.

Both the whale accumulation and comeback in Ethereum’s daily active addresses point to a renewed investor interest in ETH at current price levels. Hence, a bounce here is likely what’s next.

Other Catalysts That Support ETH Price Rally

Robert Mitchnick, head of digital assets at BlackRock, said the negativity around ETH is “overdone.” The world’s largest asset manager also noted how spot Ethereum ETFs are incomplete without staking. If institutional staking is approved, it could further catalyze capital inflow into ETH ETFs.

Elaborating more on the capital flow shows that investors are bridging their funds back to Ethereum after exploring Binance’s BNB chain and Solana based on Debridge data. To be precise, $97M from BNB has flowed into ETH. Roughly $86M, $46M and $30M capital has rotated from Solana (SOL), Arbitrum (ARB) and Base chains to ETH.

Overall, the outlook of Ethereum price and its ecosystem are looking bullish with both fundamentals and technical outlook supporting a recovery bounce.