Ethereum (ETH) has rallied 3% over the past seven days and the Ethereum whales supporting the upside are now back in the game.
According to on-chain data compiled by Santiment, crypto whales are putting their faith back in Ethereum in the near term. After ETH showed rather lackluster performance in early May.
From May 27 to June 2, the number of large ETH-related transactions nearly doubled.
Accordingly, ETH's large daily transaction figures exceed $100,000. When this metric goes up, it means whales are increasing their expectations for ETH price.
The Balance on Exchanges indicator evaluates the number of coins that a group of holders has deposited on cryptocurrency exchanges. Usually, when this metric goes up, it means that investors may be looking for short-term trading opportunities.
Conversely, when the balance on the exchange drops significantly, as seen above, that temporarily reduces the market supply.
Considering the active activity of whale investors, ETH price could rise to $2,300 in the coming weeks.
However, IntoTheBlock Global In/Out of The Money Around Price (IOMAP) data shows that ETH will face initial resistance around the $1,900 mark. This is where 2.29 million investors bought 2.58 million ETH.
Hence it can create a large selling wall. However, if the bulls prevail, as expected, a further rally towards $2,300 is possible.
On the other hand, the bears can invalidate this bullish prediction if ETH drops below the critical $1,800 support area.
However, this is where 1.86 million investors bought 5.86 million ETH so it will likely prevent that. While this is unlikely to be the case, ETH could retrace towards $1,700 if that is the level of support.
