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

▲ Ethereum (ETH)/ChatGPT Generated Image ©

Ethereum (ETH) is not merely seeing a correlated rebound, but is also fostering expectations for a re-challenge of $2,400, buoyed by expectations of supply reduction due to large-scale institutional accumulation.

According to CoinMarketCap, a cryptocurrency market data aggregator, 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%, indicating a general market rebound, but Ethereum appears to have secured its rationale for the rise with additional individual supply and demand factors.

The biggest factor behind this is institutional accumulation. Bitmain Emergent Technologies purchased an additional 101,627 Ethereum last week. This was the largest weekly purchase since December last year, amounting to approximately $230 million. This brings Bitmain's total holdings to 4.97 million units, with approximately two-thirds of these being staked, classifying them as quantities unlikely to enter the market long-term. This structure of decreasing circulating supply is interpreted as supporting the price.

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

Technically, a short-term bullish advantage is maintained. Analysis suggests that as long as Ethereum holds above its 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 is also a need to be cautious about potential short-term profit-taking at the $2,400 level.

Ultimately, Ethereum's current rise is seen not as a simple rebound but as a combined result 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 $2,400 will be key turning points for the next trend.

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