Ethereum’s trajectory toward the $3,000 (approximately R57,810) milestone is being closely monitored in South Africa, as significant wallet investors, including one linked to Justin Sun of TRON, are reportedly amassing the cryptocurrency. This trend could potentially ease the selling pressure on Ethereum by reducing its available supply on exchanges.
On-chain analysis has highlighted noteworthy Ethereum accumulation activities, with a wallet associated with Justin Sun purchasing 12,702 ETH, valued at $36.9 million (roughly R710.7 million), on February 21. From February 11 to 21, this address acquired 104,055 Ether, totaling $296 million (approximately R5.7 billion) at an average rate of $2,846 (around R54,832), primarily from Binance and various decentralized platforms.
Recent withdrawals from exchanges underscore the strategic movements of Ethereum whales. Notably, one wallet transferred 14,632 ETH (valued at $45.5 million, or approx. R877 million) from Binance and staked it, while two other significant addresses moved 6,000 Ether from Kraken, amounting to $18.7 million (close to R360 million), in the recent days.
Despite Santiment’s report of Ethereum’s supply on exchanges reaching a six-month high, the ongoing accumulation by large holders could diminish sell-off risks. Ethereum wallets holding substantial amounts of ETH have been increasing their stakes since early February, indicating a possible bullish trend.
The correlation between Ethereum’s price rise and the accumulation by wallets holding 100,000 to 1 million Ether suggests a pivotal moment for the cryptocurrency. If this pattern persists, Ethereum’s value could surge beyond the $3,000 threshold.
Moreover, the impending Bitcoin halving in April 2024 emerges as a critical event that historically precedes Ethereum price rallies. This pattern, observed during past halving instances, hints at a potential boost for Ethereum, possibly propelling it towards the $4,000 mark, especially with the SEC’s decision on a Spot Ethereum ETF looming in May 2024.
The recent liquidation of $20.48 million in short positions, coupled with Ethereum’s climb to a 2024 peak of $3,135.65, underscores the market’s optimistic outlook. For South African investors, these developments offer a glimpse into Ethereum’s promising future, emphasizing the significance of strategic investments ahead of these key catalysts.
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