Wealthy cryptocurrency investors have rapidly accumulated Ethereum during the recent market correction, purchasing over $815.5 million worth of ETH in less than a week.
Cryptocurrency analyst Ali Martinez reported to his 132,900 followers on X that significant investors, commonly referred to as "whales" in the industry, have acquired more than 420,000 Ethereum tokens within a five-day period. "Whales have bought more than 420,000 Ethereum ETH in [five days]!" Martinez stated.
Martinez has also analyzed Ethereum's In/Out of the Money Around Price (IOMAP) metric to identify critical support and resistance levels. This technical indicator categorizes cryptocurrency addresses based on their profitability status to determine price barriers.
The analysis indicates Ethereum is currently trading between well-defined support and resistance zones. "Ethereum ETH key levels to watch! On-chain data reveals $1,870 as the strongest support and $2,050 as its toughest resistance!" Martinez noted on X.
At time of writing, ETH is trading at $1,941.
Martinez's analysis extends to Bitcoin as well, where he projects potential tactical price increases after BTC broke through the horizontal resistance of an ascending triangle pattern. "Bitcoin BTC is breaking out! The target is $90,000 as long as the $84,000 support holds," the analyst reported.
Technical analysts typically consider an ascending triangle pattern to be a bullish reversal structure when an asset moves above its horizontal resistance level. Bitcoin is currently trading at $84,288.
The analyst has also turned attention to Cardano, one of Ethereum's competitors in the smart contract platform space. Martinez predicts potential gains for ADA if the cryptocurrency breaks through the diagonal resistance of a triangle pattern around the $0.75 price point.
"Cardano ADA is about to break free! Busting out of this triangle will trigger a 15% price move," Martinez told his followers.
In technical analysis, triangle patterns generally indicate a consolidation phase that precedes a potential breakout. The asset is considered to have bullish momentum if its price moves above the diagonal resistance. Conversely, a bearish outlook is expected if the price falls below the diagonal trend line. Cardano's ADA token is currently valued at $0.744.
The significant Ethereum accumulation comes at a time when the broader cryptocurrency market has experienced considerable volatility. These purchasing patterns from institutional investors and wealthy individuals often signal confidence in the long-term prospects of digital assets despite short-term price fluctuations.