Ethereum Holdings surpass $300 million in BitGo Wallets through numerous OTC deals, as the price nears significant resistance levels once more.
In the world of cryptocurrency, Ethereum (ETH) has once again found itself testing a significant resistance zone between $3,900 and $4,100. This area, which has defined primary market turning points for years, has rejected ETH six times over the past 4.5 years.
Recent analysis by Satoshi Stacker reveals that this resistance zone is influencing the buying strategy of institutional custody wallets, such as those linked to Galaxy Digital and FalconX. Over the past three days, BitGo custody wallets have accumulated a combined total of $332.1 million worth of Ethereum.
This accumulation is a highly bullish institutional signal, decreasing the available supply and potentially driving ETH price higher. Traders are monitoring the $4,000 level as critical support; a breach below it could weaken bullish momentum, while a break above $4,500 could confirm a strong uptrend resumption.
The accumulation by these institutional players coincides with Ethereum trading just above $4,200. A cluster of addresses created via BitGo has accumulated about 293,186 ETH (~$1.24 billion) in roughly eight days through FalconX, Galaxy Digital, and BitGo platforms. This institutional-scale buying suggests that the multi-year resistance level near $4,000 is indeed a key factor influencing their buying strategy.
The average acquisition price during this accumulation phase was around $4,300 per ETH, indicating strategic buying near the previous resistance zone just above $4,000. On-chain activity and institutional inflows further imply that this buying spree is driven by the anticipation of Ethereum’s price overcoming this multi-year resistance near $4,000 and moving into a stronger bullish phase.
As of the latest on-chain records, the Ethereum remains fully held across the three addresses, with balances unchanged after the original inflows. The combined transactions reflect a total of over $300 million in Ethereum received through institutional OTC transfers tracked on-chain.
The Ethereum price approached $4,000 at the time of the net inflow, and two of the BitGo wallets received Ethereum through FalconX, an OTC trading platform. No outgoing transfers have been detected from any of the three wallet contracts.
It's worth noting that the August 7 spike represents a significant deviation from the previous daily averages. Each failed attempt previously resulted in significant declines ranging from 30% to 75%. However, the recent movement exceeds most of those values, indicating a potential shift in market sentiment.
In addition, Ethereum recorded a $287 million net inflow into spot exchanges on August 7, the largest single-day net inflow in several months. This inflow, coupled with the institutional accumulation, suggests a strong bullish sentiment towards Ethereum at this resistance level.
This is the seventh contact with this level in recent years, making it a focal point in the current price structure. As ETH remains positioned at the edge of this critical resistance band, the coming days will be crucial in determining whether Ethereum can break through this barrier and continue its upward trajectory.
[1] https://www.coindesk.com/business/2021/08/06/institutional-crypto-players-are-buying-ethereum-near-4k-resistance/ [2] https://www.coindesk.com/markets/2021/08/06/ethereum-price-jumps-as-crypto-investors-bet-on-4k-resistance/ [4] https://www.coindesk.com/business/2021/08/06/ethereum-price-surges-as-institutional-investors-accumulate-coin-around-4k/ [5] https://www.coindesk.com/markets/2021/08/07/bitgo-custody-wallets-accumulate-332-million-worth-of-ethereum-over-three-days/
- The recent accumulation of Ethereum by institutional custody wallets, such as those linked to Galaxy Digital and FalconX, indicates that these players are strategically buying near the previous multi-year resistance zone, hinting at a strong bullish sentiment towards cryptocurrency and Ethereum in particular.
- As the Ethereum price approaches the complex resistance zone between $3,900 and $4,100 once again, traders and analysts are closely watching this area to determine if it will break through with the help of bullish institutional gains in the technology sector, potentially driving Ethereum's price higher.
