Modest Ethereum Gain Sparks Debate: Whale Support vs. Retail Capitulation

Modest Ethereum Gain Sparks Debate Despite Whale Buying Frenzy

On Sunday, May 18, Ethereum’s price increased by a meager 0.85%, even though investors took profits since they anticipated low weekend market activity. Important trading data shows significant purchasing pressure from Binance whale traders, despite major indications reflecting prevailing negative sentiment. It is still uncertain if active retail capitulation will send the price around $2,200 or if whales will be able to maintain the price over $2,400.

Weekend Slump for ETH: Why Did Ethereum Drop Despite Bullish Inflows?

After the US markets closed on Friday, ETH saw a significant decline, highlighting the part played by both domestic and international institutional investors in the current cryptocurrency market upswing. According to recent reports, massive investment inflows were a major bullish stimulus for Ethereum, as evidenced by the fact that the cryptocurrency was up 35% over the 14-day period. However, Ethereum’s 4% decline on Saturday can be explained by short-term traders reducing their holdings in anticipation of sluggish market volumes over the weekend, as corporate markets are currently closing for the weekend.

Ethereum Dips Below $2,500: Why Top Binance Traders Remain Bullish?

Even though Ethereum fell below $2,500, Binance’s trading data makes a strong argument for possible short-term support. Notably, the Binance ETH/USDT Top Trader Long/Short Ratio, as displayed in the Coinglass chart above, is currently 2.6697, indicating that top-tier accounts are still significantly biased toward long positions.

More tellingly, more than 75% of Binance’s top accounts anticipate a recovery, as indicated by the higher Top Trader Long/Short Ratio by Accounts of 3.04. These figures demonstrate institutional-grade traders’ optimism that Ethereum might continue to trade above $2,400. Additionally, the robust top-trader bullish bias contrasts with the signals of the broader derivatives market.

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