Ethereum On-chain Metric Shows Encouraging Signs Despite Recent Price Capitulation

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Ethereum On-chain Metric Shows Encouraging Signs Despite Recent Price Capitulation

It is not all doom and gloom for Ethereum, as a crucial on-chain metric indicates an encouragingly bullish sign for the second-largest crypto asset by market cap.

Ethereum’s slump to $2,387 on Friday was short-lived, fueled by recent speculation that US prosecutors were investigating the largest stablecoin issuer, Tether. Notably, the capitulation saw over $390 million worth of positions liquidated, with $62.21 million belonging to Ethereum traders.

Amid the chaos, an encouraging sign has flashed on on-chain activities about Ethereum, sparking speculation of an impending rebound and a near-term bullish push. Data from Santiment shows that whales have moved to Ethereum as they looked to buy the Friday dip.

Whale Activities Spike to 6-Week High

The crypto data intelligence firm stated in an X update on October 26 that whale activities on the Ethereum network have surged to a six-week high as bulls looked to acquire the asset at a discount.

The Ethereum network witnessed the creation of 6,428 new wallets as large holders accumulated Ether following Friday’s dip below $2,387. Notably, this was the largest single-day accrual since September 5.

Santiment noted that although the accumulation upsurge may not impact Ethereum’s price in the short term, it showed whales were still keen on the second-largest crypto asset despite recent price underperformance. It bears mentioning that these whales in question are wallet addresses holding $100,000 worth of Ethereum and above.

Analyst Says This is the Last Buy Opportunity

Meanwhile, TradingView analyst Basictradingtv has called the latest dip the last buy opportunity for Ethereum. In an analysis, he noted that although the altcoin king has corrected almost 50% in the past few months, the chart has maintained a bullish structure.

Furthermore, he shared an ETHUSD IM chart, showing that Ethereum was still holding its confluence support.

Per the analysis, the market commentator expects a 60% Ethereum surge to around $4,000 when the altcoin fully retests its earlier bullish break. However, he insinuated that a downtrend to $2,000 would invalidate the bullish structure, stating the price zone was an area to watch.

Ethereum On-chain Metric Shows Encouraging Signs Despite Recent Price Capitulation

Ethereum 1M Chart | BasicTradingTV

Notably, other analysts have predicted a similar uptrend for Ethereum. For instance, Ali Martinez asserted that Ethereum could rise to $6,000, citing a bounce to the upper boundary of its ascending triangle.

In the meantime, Ethereum trades at $2,464, down 6.67% in the last seven days.

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