- On April 6th, Ethereum surpassed $1,900 to reach a new 2023 high.
- Despite major FUD, Ethereum whales continued to accumulate ETH.
- Could the ETH price target be $2,500?
The ETH price has briefly regained $1,900 for the first time since August 2022. Blockchain data shows that whale investors are accumulating Ethereum ahead of the Shappela network upgrade.
The global Ethereum community is awaiting the Shappela upgrade scheduled for April 12th. Major investors are accumulating ETH by exploiting negative social sentiment and trying to prevent a potential price increase.
Despite Ethereum Price Increase, Social Sentiment Remains Negative.
Despite regaining an eight-month high, social sentiment around Ethereum has remained largely negative. Bear speculators expect the ETH price to crash when 13 million ETH is unlocked upon completion of the ETH 2.0 transition on April 12th.
According to blockchain data platform Santiment, Ethereum Net Weighted Sentiment has remained negative since February. After reaching 7.21 on February 12th, ETH weighted sentiment dropped to -0.19 as of April 7th.
Ethereum (ETH) Price vs. Weighted Sentiment, April 2023. Source: Santiment
Weighted Sentiment compares the ratio of negative to positive mentions of an asset on relevant social media. When it consistently shows a trend below zero, investors may interpret it as a perfect timing to buy the dip.
The accumulation trend among Ethereum whale investors further confirms the bullish proposition.
The Santiment chart shows that crypto whales holding between 1 million and 100 million tokens began buying when Weighted Sentiment entered a negative trend. Between February 12th and April 7th, whales added 2.4 million ETH to their wallets, worth approximately $4.4 billion.
Ethereum (ETH) Price vs. Whale Accumulation, April 2023. Source: Santiment
When whales accumulate tokens for a long period of time, it is a matter of time before smaller and other retail investors become bullish. If whale accumulation continues, it could lead to an Ethereum price rally once the current Fear, Uncertainty, and Doubt (FUD) is cleared.
Similarly, whale accumulation can encourage many ETH2.0 investors to hold for more gains instead of immediately closing their positions.
ETH Price Prediction: Is the Next Target $2,000?
IntoTheBlock’s Global In/Out of the Money chart shows that the Ethereum price could soon surpass $2,000.
As shown below, ETH faces minimal resistance towards $2,030 from 1.16 million addresses holding 1.3 million ETH. If ETH breaks that resistance, it could extend price gains up to $2,500. However, around that price, 8 million addresses holding 26 million tokens could enter a selling frenzy and cause a drop in Ethereum price.
Still, bears could prevail if the ETH price drops below $1,780. However, around that price, 9.16 million tokens are bought.
