Ethereum Whales Rapidly Accumulate ETH Amid Price Decline
25 Julio 2024 - 12:00PM
NEWSBTC
Ethereum whales have been busy in the market, as on-chain data
shows that these investors have been heavily accumulating the
second-largest crypto token by market cap. This comes amid a price
decline in ETH’s price, with history suggesting that the crypto
token might suffer more price declines in the short term.
Whales Accumulate More ETH Data from the market intelligence
platform IntoTheBlock shows that Ethereum Whales bought 297,670 ETH
($1 billion) on July 24. The previous day, these whales also bought
almost 400,000 ETH. Further data shows an increase of over 28% in
the inflows into these whales’ addresses in the last seven
days. Related Reading: Machine Learning Algorithm
Predicts Shiba Inu Price Will Rise 119% In 5 Days The decline in
outflows from these addresses further highlights these investors’
bullish sentiment towards Ethereum despite its underperformance.
Outflows from these accounts have declined by over 14% in the last
seven days and down by over 16% in the last 30 days. The
large holders’ netflow metric on IntoTheBlock also highlights this
wave of accumulation among Ethereum whales, as net flows have
increased by over 313%. This means that these investors are heavily
accumulating rather than opting to sell their ETH holdings.
On-chain analytics platform Santiment noted that this significant
increase in ETH’s whale activity is due to the Spot Ethereum ETFs,
which began trading on July 23. The platform made this observation
while revealing that since July 17, the amount of ETH transfers has
exceeded over $100,000 in value, which is over 64% higher than the
number of BTC transfers and over 126% higher than the USDT
transfers on the Ethereum network. The Spot Ethereum ETFs had
undoubtedly presented a bullish outlook for Ethereum even before
they launched, as crypto analysts like RLinda predicted that ETH
could rise to $4,000 thanks to these funds. As such, it is no
surprise that Ethereum whales continue to accumulate the crypto
token in anticipation of higher prices from ETH. The Spot
Ethereum ETFs Launch Might Be A Headwind At First The Spot Ethereum
ETFs were projected to be the catalyst that would spark a massive
rally in ETH’s price, and that is likely to happen at some point.
However, history suggests these funds may act as a headwind for
Ethereum at first, similar to the fate that Bitcoin suffered
immediately after the Spot Bitcoin ETFs launched earlier this
year. Related Reading: Analyst Says Solana Price Will Surge
1,000% To $1,800, Here’s When Bitcoin experienced significant price
declines, largely thanks to the outflows from Grayscale’s Bitcoin
Trust (GBTC). A similar situation is already playing out for ETH
with Grayscale’s Ethereum Trust (ETHE). Interestingly, Grayscale’s
ETHE experienced a net outflow of $484.1 million on day 1 of
trading, much larger than the net outflows GBTC experienced on day
1, and GBTC is bigger. Considering this, Ethereum could face
significant selling pressure from Grayscale’s ETHE. Data from
Farside Investors shows that the Spot Ethereum ETF experienced a
net outflow of $326.9 million on July 24 (day 2), likely just the
start of the massive outflows that could eventually pour out from
the fund. Featured image created with Dall.E, chart from
Tradingview.com
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