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Ethereum (ETH), the second largest cryptocurrency by market capitalization, recently saw a significant surge in activity, fueled by a remarkable increase in large transactions.
According to Ali, a crypto analyst, Ethereum’s weekly transaction volume skyrocketed by over 300%, with an impressive daily large transaction volume of $17.15 billion recorded on Dec. 7.
Ali noted that "Large Ethereum transactions are surging. The weekly transaction volume has skyrocketed by over 300%, hitting $17.15 billion."
The surge in Ethereum's large transaction volume highlights the increased activity of "whales" — large holders of the cryptocurrency. These large transactions, often exceeding $100,000, highlight a significant increase in whale activity, whether buying or selling.
The increase in whale activity correlates with the recent rise in Bitcoin and Ethereum prices. Bitcoin's price broke through the long-awaited $100,000 barrier for the first time, reaching all-time highs of $104,000 during Thursday's trading session.
Tomiwabold OlajideEthereum also crossed $4,000 for the first time in months, having previously done so in March of this year.
This increase in large transactions is sometimes interpreted as a bullish indicator, indicating strong demand and optimistic market sentiment.
On Dec. 6, the group of nine Ethereum ETFs saw a net flow of 108,045 ETH worth $433.15 million. On Thursday, Ethereum exchange-traded funds listed in the United States had a record inflow of $428 million.
Ethereum price action
Ethereum crossed $4,000 for the first time during the current market bull run on Friday, reaching a high of $4,096. Since then, the bulls have constantly attempted to break through the $4,000 barrier, but the bears have resisted.
At the time of writing, ETH was trading below $4,000, down 0.35% in the previous 24 hours to $3,996, and up 7.81% weekly.
On the downside, $3,680 and $3,523 are crucial support levels to keep an eye on. Given that Ethereum steadily gained support on the way up, traders may see dips as a buying opportunity. That raises the prospect of a rally above $4,094. Ethereum might potentially reach $4,500. This positive outlook might be dashed in the short term if Ethereum falls and breaks below $3,523.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Alex Dovbnya
Gamza Khanzadaev
Dan Burgin
Vladislav Sopov