Ethereum Price Underperforms as Whales Continue to Accumulate ETH

The crypto market witnessed a sudden surge in buying pressure following Bitcoin's recovery to $88,000.

The crypto market saw a sudden surge in buying pressure following Bitcoin’s recovery to $88,000. The recovery is likely linked to the weakening of the U.S. dollar and the stock market correction, leading investors to alternative investments.

While most major altcoins accompany the bullish momentum, the Ethereum price lags behind, signaling a risk of another decline as it faces overhead supply pressure.

Interestingly, crypto whale seems unbothered and continues to accumulate ETH, while the network also records notable adoption. Is a reversal close by?

Crypto Whale Unbothered By ETH Price Today, Accumulates More In Current Dip

Over the past two weeks, the Ethereum price has been consolidating in a lateral trend around the $1,600 level. The candle is short-bodied, and there is no clear indication of where the price will go next.

However, crypto whale seems to be unbothered by the price action, as they continue to accumulate more ETH in the current dip.

According to recent data from Lookonchain, a crypto whale withdrew 1,897 ETH (worth approximately $3 million) from the Bitget exchange some 10 hours before reporting. This withdrawal is part of a larger trend, as the same whale has pulled a total of 3,844 ETH (valued at $6.51 million) since April 3.

The crypto whale is also known to be a fan of large transactions, as they have executed several trades of over 2,000 ETH in the past few days. This activity is a strong indicator of the whale’s interest in the cryptocurrency.

As the largest holders accumulate more ETH, it will become increasingly scarce, which could drive up the price further. Moreover, crypto whale activity is often a leading indicator of price movements.

Another Angle: Ethereum Adoption Hits 40% In A Week As Interest Soars

The world’s second-largest cryptocurrency, Ethereum, has seen a significant surge in its adoption rate, reaching nearly 40% in the past week, according to recent data from IntoTheBlock.

This spike highlights a rapid increase in new users engaging with the Ethereum network.

This signals a strong fundamental factor for the cryptocurrency, especially considering the crypto market is still navigating turbulent times due to the recent price crash from the May 15 apex.

According to the cryptocurrency analytics platform, the total number of unique users on the Ethereum blockchain has hit a 12-month low. This could be a consequence of the market downturn, which might discourage new users from entering the cryptocurrency space.

However, despite the market conditions and the new users remaining relatively low, the platform’s analysis unveiled a substantial surge in the seven-day rolling average of the "relative activity volume." This measure quantifies the level of activity on the Ethereum network compared to its typical levels over the past year.

As seen in the chart above, the relative activity volume on the Ethereum network experienced a significant spike on April 12, indicating a sudden and substantial increase in activity on the network.

This spike is likely linked to the recent recovery of Bitcoin, which pulled major altcoins like ETH along for the bullish ride.

After the surge, the relative activity volume remained elevated for a few days before gradually decreasing again. Nonetheless, even at its low point, the activity level is still higher than it was at the beginning of the year.

This suggests that the recent surge in interest in Ethereum is sustained and could continue to drive up demand for the cryptocurrency.

Ethereum Price Faces 11% Downside

By press time, the Ethereum price trades at $1573, with an intraday loss of 0.88%. Despite the broader market upswing, the ETH/USD daily chart shows a long-width rejection candle, highlighting overhead selling.

With the sustained bearish momentum, the coin price is likely to plummet another 11.6% to test the multi-year support of $1,385.

If the support holds, the ETH price is likely to rebound back to the $1,800 level and challenge the resistant trendline of a falling channel pattern. This chart pattern has been concentrating the current correction trend within two converging trendlines, which provide dynamic resistance and support to the price. A bullish breakout from this pattern will be crucial for buyers to change the market direction.