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Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has seen a significant surge in whale activity. Whales, or large holders, have been making notable moves on the market, raising questions on what this implies for price.
According to Lookonchain, a fresh whale wallet recently accumulated 7,389.5 ETH, valued at approximately $23.44 million, some hours back. This recent purchase brings the whale's total accumulation to 18,049 ETH, worth around $59.3 million, over the past three days.
In contrast, two other whales deposited a combined total of 11,286 ETH, valued at $36 million, to Binance, according to Lookonchain. Depositing large amounts of ETH to an exchange like Binance could indicate a potential sell-off, which might exert downward pressure on the price.
Tomiwabold OlajideThe contrasting actions of these whales highlight the complex dynamics at play on the cryptocurrency market. While accumulation by whales typically suggests bullish sentiment and can drive prices higher, large deposits to exchanges might signal impending sales, which could lead to price drops.
Ethereum marks $157 million inflow
According to the most recent CoinShares report, digital asset investment products saw inflows of $1.98 billion, while price action pushed global AuM to a new high of $116 billion.
Bitcoin topped inflows with $1.8 billion, totaling $9 billion since the U.S. Federal Reserve reduced interest rates for the first time this cycle in September. Ethereum, which has been struggling, had inflows of $157 million last week, the highest inflow since the ETF launched in July of this year, marking a considerable improvement in sentiment.
Ethereum price reached a high of $3446 on Nov. 12 after seven consecutive days of gains before dipping.
At the time of writing, ETH was down 0.56% in the last 24 hours to $3,192 and would mark the third day of declines if today closes in red. If the $3,446 level is surmounted, ETH might rise to $3,800 and eventually $4,094.
Meanwhile, the short-term advantage will shift to bearish if the ETH price falls below $2,900.
Godfrey Benjamin
Gamza Khanzadaev
Dan Burgin
U.Today Editorial Team
Vladislav Sopov