The trend in Ethereum’s price has shown signs of slowing down recently, particularly as it repeatedly encounters obstacles near the $2,800 mark. After an impressive uptick in early May, the second-largest cryptocurrency is looking to regain traction and possibly breach the notable $3,000 threshold in the months ahead.
Since dipping below the $3,000 mark at the beginning of February, Ethereum has faced challenges in sustaining any bullish momentum. The cryptocurrency managed to hover around the $2,700 range several times recently. However, fresh data suggests a potential surge in Ethereum’s price might be on the horizon in the upcoming months.
Insights from Ethereum Whales
On May 31, a cryptocurrency analyst known by the handle Darkfost took to X to share valuable insights regarding Ethereum’s market dynamics and the sentiment among investors. The analyst highlighted a notable on-chain indicator that previously signaled significant price surges for ETH.
This key metric, known as Ethereum’s Average Order Size on Binance, is determined by dividing total trading volume by the number of trades on the leading cryptocurrency exchange. This figure sheds light on whether large institutional players or retail traders are dominating market movements on this platform.
According to this analysis, major investors—often referred to as whales—have returned to the Ethereum market, as evidenced by their trading activity on Binance since May 19. Darkfost noted that an accompanying chart provides “an immediate view of Ethereum’s market sentiment and momentum, integrating critical trading data from spot and futures markets along with moving average comparisons.”
According to the analyst:
In essence, this signal is a comprehensive indicator, and currently, it’s signaling rare and powerful insights, as the last occurrence of this nature was in December 2023, prior to ETH soaring from $2,200 to $4,000.
Darkfost emphasized that whales do not merely seek out low buying opportunities; instead, they often position themselves early when a larger trend begins to take shape. Given that the average orders on Binance are largely made by these whales, this could imply that Ethereum is gearing up for a potential 80% increase in price over the coming weeks.
Thus, Darkfost posits that May may have presented a significant entry point, which many large investors likely capitalized on.
Current Ethereum Market Overview
As of the latest updates, Ethereum’s price is hovering around $2,537, reflecting a modest increase of 0.5% over the past 24 hours.
