Institutions Swept Up Over 100,000 Units... There Was a Reason for Ethereum's Bull Run

▲ Ethereum (ETH)/ChatGPT Generated Image ©

Ethereum (ETH) is not just experiencing a simple rebound; expectations of supply reduction due to large-scale institutional accumulation are also contributing to growing anticipation of a re-challenge to $2,400.

According to cryptocurrency market data aggregator CoinMarketCap on April 22 (local time), Ethereum traded at $2,365.83, up 2.31% over 24 hours. During the same period, Bitcoin (BTC) also rose by 2.47%, leading to a broader market rebound, but Ethereum appears to have secured its justification for growth with additional individual supply and demand factors.

The biggest factor is institutional accumulation. Bitmain Immersion Technology additionally purchased 101,627 Ethereum last week. This was the largest weekly purchase volume since December last year, amounting to approximately $230 million. As a result, Bitmain's total holdings reached 4.97 million units, with approximately two-thirds of them staked, classifying them as quantities unlikely to enter the market long-term. This structure of decreasing spot circulation is interpreted as supporting the price.

Derivative market trends are also favorable. The Ethereum taker buy/sell ratio on Binance has reportedly climbed to its highest level since early 2023. This indicates that aggressive buy orders are flowing in, beyond simple holding demand. Coupled with the recovery of overall market risk appetite linked to Bitcoin's strength, this has further boosted Ethereum's upward trend.

Technically, short-term bullish dominance is maintained. Analysis suggests that as long as it stays above the 7-day simple moving average of $2,327, an attempt to re-break $2,400 is likely. However, the Relative Strength Index (RSI) has risen to around 69, approaching overbought territory, so there's also a need to be cautious about potential short-term profit-taking at $2,400.

Ultimately, Ethereum's current rise is interpreted not as a simple rebound but as a result of a combination of supply reduction due to institutional buying and overall market strength. In the short term, whether it maintains support at $2,327 and successfully breaks past $2,400 will be key turning points determining the next trend.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*