Ethereum whales’ recent decision to accumulate heavily amid a recent price dip has reinforced bullish market sentiments surrounding the second-largest cryptocurrency by market cap. On Friday, crypto analyst Ali Martinez revealed that the large investors, also known as whales, bought 100,000 ETH amid the token’s recent price volatility. In the aftermath, market watchers anticipate price gains ahead despite unchanged interest rates this FOMC and looming U.S. PCE inflation data release.
Ethereum Whales On Buying Spree Ignite Optimism
According to an X post by Ali Martinez on January 31, Ethereum whales purchased over 100,000 coins during the recent price dip. The massive purchase reflects a potential ‘buy-the-dip’ sentiment prevailing among large-scale investors. In turn, long-term prospects for the crypto’s price remain bullish in the wake of heightened buying pressure and rising interest in the asset.
Source: Ali Charts, X
Also, it’s worth mentioning that the Trump family project has bought $250 million worth of ETH recently. Ethereum co-founder and ConsenSys founder Joseph Lubin revealed on X that the massive purchase comes as the project looks to set up a DeFi business.
Although these events project bullishness on future price actions, it’s worth mentioning that the coin currently encounters significant volatility amid current broader market trends.
Market Uncertain Amid Latest U.S. Economic Data
The crypto market currently mirrors a muted investor interest right ahead of the PCE inflation data release scheduled for later today. CoinGape reported that Bitcoin and Altcoins faced volatility on Friday, with another macro event impacting investor sentiments.
Notably, the latest U.S. FOMC meeting has decided to keep interest rates unchanged at 4.25% to 4.50%. This data raised concerns over risk assets such as crypto, as investors may want to mitigate losses by investing more in U.S. dollar-backed assets.
Nevertheless, large-scale investors appear to be digesting the latest decision by the Fed whilst hoping the PCE inflation data cools down. This market anticipation is highly reflected by the massive accumulation by Ethereum whales.
What Lies Ahead For ETH Price?
At the time of reporting, ETH price witnessed a nearly 2% increase in value and is currently trading at $3,246. The coin’s 24-hour low and high were $3,182.14 and $3,282.99, respectively. It’s worth mentioning that the most critical resistance level for the coin lies at the $4,000 mark, a key barrier over the years.
Source: Ali Charts, X
However, the massive buying by ETH whales has paved a bullish way surrounding long-term price prospects. Additionally, market expert Michaël van de Poppe posted on X, “ETH vs. BTC can still print a bullish divergence.” This statement indicated that while the price is declining, the broader momentum is improving, indicating that a potential reversal looms.
Source: CryptoMichNL, X
Also, the analyst added, “I think that the dynamic and pendulum between the DXY (US Dollar Index) and ETH is going to change towards Ethereum rather than the Dollar.” Despite the recent risks presented to crypto in light of macroeconomic events, this statement projects optimism about the crypto’s future price action.
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