The average spot order volume for Ethereum is showing an increase after the recent price drop below $3200. CryptoQuant analysts note that the activation of large players, especially during downturns, typically indicates the formation of a local bottom for the cryptocurrency.
This is reported by Business • Media
Increased Activity Among Whales and Signals of Institutional Return
Experts have observed that the rise in activity from large wallets may indicate the return of institutional investors who are using the current decline to enter positions. Meanwhile, retail traders are currently adopting a cautious strategy, refraining from active market actions.
“If this behavior continues and the $3000-$3400 range holds as structural support, Ethereum may enter a low-volatility accumulation zone, preparing for a potential final bullish impulse towards the upper range of $4500-$4800,” CryptoQuant stated.
Bitcoin Market Dynamics: Activation of Long-Term Holders
Experts also noted an increase in activity among long-term Bitcoin holders. According to their data, on November 4, the number of transfers to exchanges reached its highest level since July, primarily involving coins aged between three to seven years. The most interest is generated by transactions from wallets that have remained inactive for over seven years – such movements typically occur only during significant market events and may indicate the beginning of major changes or a shift in institutional strategy.
“The fact that the price remains around $106,000 despite these movements confirms that the market is in a phase of calm redistribution rather than a sell-off. If the balance between old deposits and ongoing demand from new participants is maintained, we can expect price accumulation upwards in the coming weeks, paving the way for a new upward trend fueled by institutional demand,” CryptoQuant explained.
Previously, analyst Willy Woo expressed expectations for Bitcoin’s growth amid the recovery of liquidity in the market.