- Ethereum’s breakout defied expectations, surging 31.88% in less than three trading sessions.
- A peculiar divergence indicated that spot trading activity was influencing price movements more than institutional flows.
Ethereum’s [ETH] recent rally seemed almost contradictory. Despite significant outflows from ETFs, the altcoin saw a rapid 31.88% increase in value over a short period. Quite unexpected, isn’t it?
Rather than slowing down, ETH broke through resistance levels and reached new highs for the month, completely changing the bearish sentiment prevailing in the market.
This divergence signifies more than just retail excitement.
According to AMBCrypto, it sets the stage for a FOMO surge, where initial demand from spot trading leads to institutional investors chasing potential high returns.
Ethereum’s Remarkable Resurgence
Interestingly, whale activity in Ethereum is moving in the opposite direction to the price movement of ETH.
Since reaching a peak of $4,000 in mid-December, the number of Whale Addresses holding over 1,000 ETH has been increasing.
However, these large wallets are currently in the red, facing unrealized losses. Therefore, they are waiting for an opportunity to break even or make a quick profit.
In fact, when ETH surged by 30% to $2,345 on May 9th, the number of whale addresses decreased from 4,945 to 4,913.
Source: Glassnode
It appears that even the so-called smart money, along with ETF outflows, is contributing to the bearish sentiment, either holding onto their positions or exiting the market.
Despite this, Ethereum’s breakout is defying the prevailing negative sentiment.
Fueled by the Pectra upgrade, increasing dominance in real-world asset (RWA) tokenization, and a more coherent ecosystem narrative, ETH is undergoing what market experts are referring to as a “structural cleanup.”
For the first time in a while, Ethereum seems to be overcoming its identity crisis, and the on-chain data supports this momentum.
Renewed FOMO: On-chain Activity Attracting Institutional Investors
Ethereum’s breakout is reigniting FOMO.ETF flows have turned positive, bringing in nearly $18 million in new investments.
Moreover, large whales are re-entering the market – Addresses holding over 10k ETH have recently turned net positive, marking the first accumulation increase in three months.
Historically, this kind of accumulation by major whales has signaled Ethereum’s significant price increases.
Source: Glassnode
This is a clear indication that institutional investors are considering higher-risk assets, with ETH once again catching their attention.
The $2,000 breakout was not a random event. It was supported by strong bid-side demand, suggesting that this is not just a short-term rally but the beginning of a fundamental shift in market demand.
If this trend continues, Ethereum could be gearing up for significant price growth.
The appearance of major whales in the market is usually not coincidental – ETH may be reclaiming its position as a significant market influencer.
Given text please.