The past months have seen whales increasingly stack up on Ethereum as the token continues to smash its multi-month highs. Amid this sustained whale accumulation trend, data from Lookonchain has revealed another massive ETH buy activity on Binance today.
According to the data, a large Ethereum address tagged “0x3952…” was spotted consecutively carrying out multiple ETH withdrawals, which saw it move a total of 21,000 ETH worth about $90.6 million from the exchange in less than 40 minutes.
While the reason behind the massive Ethereum transaction was not stated, withdrawals of ETH tokens like this from a crypto exchange like Binance to private wallets are pointers to a major buy activity involving the second-largest cryptocurrency by market capitalization.
More specifically, the consistent outflow of large quantities of ETH from crypto trading platforms is an indicator that high-profile holders or institutional investors are aggressively stacking up on the asset.
Nonetheless, the data further revealed that the massive ETH purchase from the whale on Aug. 12 has pushed its total holdings to 86,001 ETH, worth about $260 million per ETH’s current trading price.
Bitcoin’s dominance threatened?
The growing accumulation trend witnessed in the Ethereum ecosystem in recent days, especially from the spot ETH ETFs, suggests that institutional investors are showing no signs of slowing down on loading up on the asset.
This has seen the spot ETH ETFs record multiple days of consecutive inflows, with ETH posting the second-highest monthly gains in the past month, according to data from Glassnode.
While Bitcoin’s returns over the month have stayed steady during the last 30 days, Ethereum has outperformed the leading cryptocurrency in this major metric, suggesting that large investors and institutions are weighing more on Ethereum.
Notably, the whale accumulation trend appears to have outweighed selling pressures from retailers, as Ethereum has remained mostly on the upside, signaling bullish sentiment among Ethereum’s large investors.
While Ethereum has recently retested its multi-month high of $4,509, market participants are highly hopeful that the unrelenting whale accumulation of ETH is poised to trigger more bullish momentum for the asset in the near future.
As such, the surging ETH withdrawal activities from exchanges could tighten supply for the token, positioning it for a continued price rally.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team