Recently, there has been a surge in activity among Ethereum whales in the market. These large investors have been actively accumulating Ethereum, the second-largest cryptocurrency by market cap, despite a downward trend in its price. This article will delve into the on-chain data surrounding Ethereum whales’ activities and analyze the potential implications for the price of ETH in the near future.
On-chain data analysis from the market intelligence platform IntoTheBlock reveals that Ethereum whales purchased a substantial amount of ETH on July 24, amounting to 297,670 ETH (equivalent to $1 billion). This buying spree continued from the previous day, where these whales acquired nearly 400,000 ETH. The data further indicates a significant uptick of over 28% in inflows into these whales’ addresses over the past seven days.
Despite the recent underperformance of Ethereum in the market, Ethereum whales seem to maintain a bullish sentiment towards the cryptocurrency. The outflows from these whales’ addresses have decreased by more than 14% in the last week and over 16% in the last month. This behavior suggests that these investors are leaning towards accumulating ETH rather than selling off their holdings.
The large holders’ netflow metric on IntoTheBlock reinforces the notion of accumulation among Ethereum whales. The data shows a substantial increase of over 313% in net flows, indicating a strong trend of accumulation. This data reflects the confidence that these whales have in Ethereum’s long-term potential and future price performance.
The recent surge in activity among Ethereum whales can be attributed, in part, to the introduction of Spot Ethereum ETFs, which commenced trading on July 23. Santiment, an on-chain analytics platform, highlighted the correlation between the ETF launch and the increase in whale activity. Since July 17, the value of ETH transfers has surpassed $100,000, exceeding both Bitcoin and USDT transfers on the Ethereum network.
Crypto analysts, including RLinda, had predicted a bullish outlook for Ethereum following the introduction of Spot Ethereum ETFs. Speculations suggested that ETH could potentially reach $4,000 on the back of these funds. Hence, it is not surprising that Ethereum whales are actively accumulating the cryptocurrency in anticipation of a price surge in the near future.
While the Spot Ethereum ETFs are expected to drive a substantial rally in Ethereum’s price, historical trends indicate that these funds could initially act as a headwind for the cryptocurrency. Similar to the scenario witnessed with the launch of Spot Bitcoin ETFs earlier this year, Ethereum might face some selling pressure initially.
The situation is further complicated by the outflows from Grayscale’s Ethereum Trust (ETHE), which experienced a significant net outflow of $484.1 million on the first day of trading. This outflow is notably higher than the initial outflows seen with Grayscale’s Bitcoin Trust (GBTC). The selling pressure from ETHE could pose a challenge for Ethereum in the short term.
The accumulation pattern observed among Ethereum whales reflects their optimism regarding the future price performance of ETH. The introduction of Spot Ethereum ETFs and the increasing whale activities signal a potential price surge in the cryptocurrency. However, the market dynamics, especially the selling pressure from Grayscale’s ETHE, could pose challenges for Ethereum in the near future. Investors should carefully monitor these developments to make informed decisions regarding their investments in Ethereum.