Bitrabo Editorial
Ethereum has been enduring a phase of bearish market behavior, causing a decline in its price that has left many traders and investors unsure about the future. Despite this, there has been significant activity behind the scenes that may hint at a shift in market dynamics towards a more bullish trend.
Recent on-chain data has unveiled a substantial accumulation trend for ETH, primarily attributed to whale activity. These large investors, known as “whales,” have been actively purchasing Ethereum in large quantities, amounting to hundreds of millions of dollars, signaling their optimism for an impending price surge.
Enormous Acquisition of $440 Million Worth of ETH by Ethereum Whales
The notable accumulation pattern came to public attention through a post by renowned crypto analyst Ali Martinez on the social media platform X. According to data from CryptoQuant shared by Martinez, Ethereum whales have recently acquired 126,000 ETH, valued at around $440 million, in just 48 hours.
An analysis of the CryptoQuant chart reveals that the surge in purchases was driven mainly by addresses holding over 100,000 ETH each, categorizing them as ultra-whales. These influential investors hold significant sway in the Ethereum market and often impact market trends and investor sentiment.
A closer look at the chart indicates a substantial increase in the total balance held by this elite group of traders. Their combined holdings rose from about 5.1 million ETH on June 28 to over 5.23 million ETH by June 30, showing a clear uptrend compared to the balance of 5.05 million ETH recorded on July 22.
Reasons Behind the Accumulation
This accumulation trend can be attributed to whales positioning themselves in anticipation of an upcoming bull run, particularly in light of Spot Ethereum ETFs. Investors are noting a shift in these spot ETFs, with inflows into other Ethereum ETFs surpassing outflows from Grayscale’s ETHE.
Although the launch of these Spot Ethereum ETFs hasn’t yet triggered a price rally for Ethereum and has actually led to a “sell-the-news” event, where ETH has seen a decline of approximately 12.8% and hit a recent low of $3,090, analysts remain bullish on Ethereum. This indicates a prevailing positive investor sentiment, even if it’s primarily driven by psychological factors.
As of the latest data, Ethereum is trading at $3,150, with on-chain indicators suggesting that many whales are gearing up for an impending altcoin rally led by Ethereum. CryptoQuant’s on-chain data highlights an uptick in limit buy orders for altcoins on various exchanges, resulting in the formation of substantial buy walls, signaling the potential for an altcoin rally.