Ethereum Whales Accumulate ETH in Anticipation of a Rally
On-chain data reveals that Ethereum whales are anticipating a rally and actively accumulating the cryptocurrency amidst periods of high volatility.
Several major holders have reportedly purchased Ethereum over the past week, taking advantage of the market’s significant price fluctuations.
One prominent whale, identified as “0×9314,” spent $48 million to acquire 21,192 ETH at an average price of $2,265 per coin on January 5th. This whale began accumulating ETH in January of the previous year and has acquired nearly 80,000 coins since then, mostly from decentralized exchanges (DEX) and Binance, at an average price of $1,790.
The whale financed these purchases through loans obtained on DeFi protocols Aave and Liquidity. Over the year, these investments have yielded a profit of over $36.84 million, representing a return of 26%.
Another Twitter account, LookOnChain, which tracks on-chain activity, identified two more whales that purchased significant amounts of BTC and ETH following the recent price dip. Combined, these whales reportedly bought over 1,300 ETH at a price of $2,225.
On-chain analytics provider Santiment confirmed the swift accumulation of Ethereum by the largest holders. According to Santiment, the top 150 wallets now hold more than 56 million ETH, marking a historical high.
Notably, Santiment pointed out that large non-exchange ETH holders are accumulating coins rapidly, while the amount on exchange wallets remains stable.
The increase in whale activity has sparked optimism for an Ethereum price surge in the near future. Santiment’s experts believe that the growing accumulation by major ETH holders is a positive sign for the cryptocurrency.
Market analysts are closely watching developments, and technical analyst CryptoBusy highlighted the changing dynamics of Ethereum’s support and resistance levels. Additionally, the upcoming decision by the U.S. Securities and Exchange Commission (SEC) regarding Ethereum spot ETF applications from Invesco and Galaxy is generating interest.
As of now, Ethereum is trading near $2,240, having stabilized above $2,150 since the beginning of the year. While it has seen a slight decrease over the week, the positive sentiment around whale activity and potential ETF approval keeps hopes high.
Despite lagging behind some other major altcoins in 2023, Ethereum remains a favorite among market analysts. VanEck, a prominent asset manager, predicts that ETH’s price could surpass $50,000 by 2030.
The market’s attention is now focused on whether Ethereum can make up for lost ground in 2024, with optimistic price forecasts for the year ahead.
