Ethereum Whales Spark Potential Rally as ETH/BTC Accumulation Surges

Ethereum (ETH) price is showing signs of a potential rally, as Bitfinex whales are aggressively accumulating ETH against Bitcoin (ETH/BTC). This whale activity has historically marked local bottoms for Ethereum price and sparked full-blown rallies. With Ethereum still trading 43% below its all-time high, as of November 2021, and Bitcoin dominance hovering near cycle peaks, this whale activity could foreshadow a major reversal for ETH price.

Crypto exchange Bitfinex, favored by institutional traders and high-net-worth “whales,” has a track record of whale-driven market moves. These investors are now accumulating ETH against Bitcoin (ETH/BTC), which has often marked local bottoms for Ethereum price and sparked full-blown rallies. Past cycles show that during these phases of sustained buying pressure from Bitfinex ETH whales, Ethereum’s value has dramatically outperformed Bitcoin.

The current ETH/BTC chart mirrors previous setups, with whales aggressively buying the pair amid Ethereum’s relative underperformance. If history rhymes, it could hint at a mean reversion play for ETH price, allowing it to close the gap against Bitcoin—a scenario that could propel ETH to new highs if BTC stability persists. Such a development could also catalyze an alt season, where BTC potentially stagnates, allowing capital to rotate into altcoins.

According to popular analyst RektProof, the opportunity cost of Ethereum price is undeniably high for the next few weeks. His analysis compares Ethereum (ETH), Bitcoin (BTC) and Gold (XAU). The chart notes similar characteristics for Gold and BTC before an explosive move to new highs. For each of these assets, there was a range deviation before ATH. Currently, Ethereum price is recovering from its second rangebound deviation, hinting that an explosive rally will follow next.

Key ETH price levels include $2,900. A decisive flip of the hurdle into a support floor will confirm the start of the bullish phase. In this explosive stage, the range high at $4,100 will be a key level for booking profits. However, RektProof notes that the target for this opportunity cost may see Ethereum price revisit the 261.8% Fibonacci extension level at $6,500.