The post Ethereum Eyes $4,000 as On-Chain Data Confirms Whale Accumulation and Supply Crunch appeared on BitcoinEthereumNews.com.

Ethereum (ETH) has staged a strong comeback this month, helped by the ongoing risk-on sentiment in the crypto market. After 45% gains in May, ETH is now within touching distance of $3,000, a key psychological level. Adding tailwind to this price rally is smart money investors buying dips while the ETH balance on exchanges plummets. Smart Money Buys ETH, Boost Ethereum Price Rally On May 14, Ethereum (ETH) rose 1.73% to hit $2,700 for the first time since February 24. Currently, ETH trades at $2,600 after dropping 4.36% from the daily high. A potential catalyst that may propel ETH to $3,000 and above is accumulation from smart money investors, as spotted by Nansen. The platform tracked 1,922 smart money investors, up from last month’s low of 1,670. It is the highest figure it has been since February this year. They now hold 123,615 ETH coins, up from last month’s low of 86,709. Ethereum Smart Money Investors buy These investors are usually more experienced than retail traders, and their actions, such as accumulation or distribution, tend to impact the underlying asset. In most cases, they are quick to spot potential reversals, as they did in April when the price of Ethereum crashed to $1,380. As the chart above shows, they started buying on April 9 and continued doing so before it went parabolic last week. ETH Supply on Exchanges Falling, Staking Inflows Rise CoinGlass data shows that exchange balances have dropped from a peak of 15.75 million on April 25 to 15.15 million as of May 14. Historically, exchange outflows are usually a bullish factor as the tokens are not readily available to sell during times of panic. On the other hand, exchange inflows is bearish and shows investors are ready to exit their positions. Ethereum Exchange Reserves In addition to…

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Filed under: News - @ May 14, 2025 11:21 pm