In recent times, Ethereum whales have been making significant moves in the market, as evidenced by on-chain data indicating heavy accumulation of the second-largest crypto token by market cap. Despite a decline in ETH’s price, these investors have been actively buying up large amounts of the cryptocurrency. Data from the market intelligence platform IntoTheBlock reveals that Ethereum whales purchased 297,670 ETH (equivalent to $1 billion) on July 24 alone. Moreover, the previous day saw these whales acquire almost 400,000 ETH. This surge in buying activity has resulted in an increase of over 28% in the inflows into these whales’ addresses over the last seven days.
Bullish Sentiment Despite Underperformance
Interestingly, the decrease in outflows from these addresses further underscores the bullish sentiment prevalent among these investors towards Ethereum, despite its recent underperformance in the market. Outflows from these accounts have dropped by more than 14% in the past week and over 16% in the last 30 days. The large holders’ netflow metric on IntoTheBlock also confirms this trend of accumulation among Ethereum whales, with net flows surging by more than 313%. This surge in net flows signifies that these investors are actively accumulating ETH rather than divesting their holdings.
According to on-chain analytics platform Santiment, the notable uptick in ETH whale activity can be attributed to the introduction of Spot Ethereum ETFs, which commenced trading on July 23. The platform observed that since July 17, the value of ETH transfers has surpassed $100,000, a figure that is more than 64% higher than the number of BTC transfers and over 126% higher than USDT transfers on the Ethereum network. The bullish outlook presented by the Spot Ethereum ETFs has driven many crypto analysts, including RLinda, to predict a potential increase in ETH’s price to $4,000. Consequently, it is not surprising that Ethereum whales have continued to accumulate the crypto token in anticipation of higher prices.
While the Spot Ethereum ETFs were expected to catalyze a significant rally in ETH’s price, historical trends suggest that these funds may initially pose challenges for Ethereum, akin to what Bitcoin faced following the launch of the Spot Bitcoin ETFs earlier this year. Bitcoin encountered notable price declines, largely due to outflows from Grayscale’s Bitcoin Trust (GBTC). A similar narrative is emerging for ETH with Grayscale’s Ethereum Trust (ETHE). Intriguingly, Grayscale’s ETHE witnessed a net outflow of $484.1 million on the first day of trading, surpassing the net outflows recorded by GBTC on its debut day.
While Ethereum whales are actively accumulating ETH in the face of price declines and market uncertainties, the introduction of Spot Ethereum ETFs has introduced new dynamics that may pose challenges for the cryptocurrency in the short term. Despite the potential headwinds from significant selling pressure by institutional entities like Grayscale’s ETHE, Ethereum’s long-term outlook remains promising, with market participants closely monitoring the unfolding developments in the crypto space.
Leave a Reply