Ethereum price closed March 2024 at $3,646.8, marking an 11.8% growth for the month. Recent trends among ETH whale investors suggest a positive start to April.

Ethereum price saw a positive start in March 2024 but faced challenges post the Dencun Upgrade on March 13. Recent trends indicate a bullish shift in the catalysts behind the price stickiness of ETH. How will ETH prices respond in April 2024?

After Dencun upgrade sell-off, ETH whales are buying again

In the initial twelve days of March 2024, Ethereum surged by 25%, reaching a yearly peak of $4,092. However, a downturn occurred around March 13 following the deployment of the Dencun Upgrade by the Ethereum dev team.

Strategic swing traders selling-the-news and large stakeholders taking precautionary measures led to a 13% dip within a week. But recent market data shows a positive sentiment among investors over the past two weeks.

Key Highlights:

  • Ethereum top 10,000 wallets acquired 860,000 ETH worth $3.1 billion since March 20
  • Whales’ acquisition could signal a bullish trend to retail investors
  • Market supply has dropped by $1.3 billion, indicating potential price surge

Since March 20, the top 10,000 Ethereum wallets have purchased 860,000 ETH valued at $3.1 billion, following a sell-off post the Dencun Upgrade. This sustained acquisition could positively impact the start of April 2024 for two main reasons.

Firstly, whale investors hold significant influence on price action and can signal a recovery phase to retail investors. Secondly, whales tend to have a longer investment horizon, keeping a considerable portion of the purchased ETH off the market supply in the short term.

These factors might pave the way for a positive start to April 2024 for Ethereum price.

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Further supporting the bullish sentiment, a key Ethereum on-chain metric shows a decline in the number of ETH coins available for trading across exchanges. Cryptoquant’s exchange reserves metric indicates a drop in active ETH market supply since the whales resumed buying on March 20.

This decline in ETH market supply, which amounts to over $1.3 billion, suggests a potential breakout for Ethereum price during the next demand surge in April 2024.

Ethereum (ETH) price forecast: $3,700 resistance looms large

Based on on-chain insights, Ethereum price is poised for a parabolic breakout above $4,000 in April 2024. However, a short-term resistance at $3,700 poses a challenge for the bulls, as indicated by IntoTheBlock’s global in/out of the money chart.

Despite the resistance, the recent whale acquisitions and decline in market supply suggest that ETH price could surpass $4,000 in the near future.

If the crypto market rally loses momentum, Ethereum bears might regain control if the price falls below $3,200. However, proactive defensive purchases by certain addresses could prevent a significant downturn below $3,500.

Overall, the market dynamics indicate a positive outlook for Ethereum price in April 2024.

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