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▲ Ethereum (ETH), Chainlink (LINK), Cryptocurrency Whale/AI Generated Image
Ahead of the US Federal Open Market Committee (FOMC) meeting, the possibility of an interest rate freeze has been reflected at 99%. In the cryptocurrency market, major whale investors are proactively building positions without waiting for remarks from Federal Reserve Chairman Jerome Powell.
BeInCrypto reported on April 29 that whale funds are rapidly flowing into specific cryptocurrencies in the hours leading up to the meeting, with Chainlink (LINK) and Ethereum (ETH) showing clear accumulation trends.
Chainlink is trading at $9.30, just below the key resistance level of $9.39. According to Santiment data, whale wallet holdings, excluding exchanges, increased from 663.21 million LINK on April 23 to 667.84 million LINK on April 29. Approximately 4.6 million LINK were additionally accumulated over about 6 days, valued at approximately $42.7 million at current prices. This accumulation has continued steadily without a pattern of short-term profit-taking followed by re-purchases and is interpreted as a confidence-based buying trend observed during periods of macro risk aversion.
Technically, signals of an upward reversal are also being observed. Chainlink has formed an inverse head and shoulders pattern with a low of $8.19, and the right shoulder was formed around $8.99. If it breaks above $9.39 on a closing basis, the next target is $10.02, which coincides with the 0.618 Fibonacci retracement level. A subsequent break above $10.02 could open up an upward potential of approximately 17% to $11.69. Conversely, if it fails to break the $9.39 resistance and falls below $8.99, the structure weakens, and a drop below $8.19 invalidates the pattern.
Ethereum also shows a prominent whale accumulation trend. Ethereum is trading at $2,309, maintaining above its 20-day exponential moving average of $2,294. According to Santiment data, whale wallet holdings increased from 123.35 million ETH on April 19 to 124.43 million ETH on April 29. Approximately 1.08 million ETH were additionally accumulated over about 10 days, valued at approximately $2.49 billion at current prices.
The background for Ethereum's accumulation is far from expectations of interest rate cuts. According to CME FedWatch, the possibility of an interest rate cut is virtually nonexistent. Instead, on-chain structural demand is identified as a key factor. Since April 19, approximately 331,000 ETH have been withdrawn from exchanges, reducing holdings to their lowest level since 2016, and inflows into corporate treasury assets are also continuing. Bitmain additionally purchased approximately 101,901 ETH last week, valued at approximately $233 million.
Whales appear to be using the sideways trading period before the FOMC as a buying opportunity before the potential for price increases due to supply reduction is reflected. Indeed, since mid-April, Ethereum's price has moved within a range of approximately 5% between $2,250 and $2,377, forming a supply absorption zone.
Technically, a break above the 100-day exponential moving average of $2,349 and then $2,377 could open up an upward potential of approximately 11.92% to $2,583. Conversely, on the downside, $2,294 and $2,245 act as initial defense lines, and if $2,250 breaks, there is a possibility of a drop to $1,936.90.
*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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