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▲ Ethereum (ETH) ©
Recently, Ethereum (ETH) has continued its downward trend, with major support lines breaking and various negative factors compounding, but the market's true power players, who led the past 173% surge rally, are secretly accumulating, signaling the prelude to a major reversal.
According to crypto media outlet Bitcoinist on May 24 (local time), Ethereum gave back most of its gains from April and experienced a decline leading up to the weekend, barely forming a support line just above the $2,000 (USD) mark early Saturday. While market headlines focus on the massive outflows from Ethereum spot ETFs and the breakdown of the $2,200 support line, pouring out pessimistic forecasts, cunning large investors, known as 'Smart Money,' are taking the opposite approach.
On-chain data analysis platform Alphractal stated that Smart Money, referring to large non-exchange holders with the most Ethereum in their wallets, is leading a strong accumulation narrative that the market has recently overlooked. According to their own Smart Money Flow Index analysis, these investor groups began moving significant amounts of Ethereum to virtual asset bridges on the Hyperliquid and Base networks starting May 14, when Ethereum's price plummeted. Experts interpreted this not as asset selling, but as a strategic repositioning aimed at a market rebound.
Notably, this unique fund movement pattern by Smart Money precisely matches the movements observed just before Ethereum's staggering 173% surge from $1,500 to $4,100 in October 2023. Recent on-chain data shows that Smart Money investors have been net buyers of Ethereum for 9 out of the last 12 days, continuing their accumulation at low prices.
Alphractal's expert analysts warned against making the mistake of judging the Ethereum market based on a single indicator. While the Ethereum spot ETF outflow indicator suggests a bearish market, the Smart Money Flow Index points to a perfectly bullish one. In other words, combining market data suggests that while retail traders and ETF allocators are panic-selling below $2,200, the key whale forces that have genuinely driven Ethereum's price movements in the past two bull cycles are absorbing these assets entirely.
As of the time of writing, Ethereum's price is trading at approximately $2,113, up more than 2% from 24 hours ago, but according to data analytics platform CoinGecko, it remains down by about 3% on the weekly chart. Experts predict that if historical patterns are repeated, the trading discrepancy between ETF investors and Smart Money could become a powerful springboard, driving over 100% excess returns for Ethereum in the future.
*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.*
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