Ethereum whales accumulate $1 billion in ETH: Sign of a rally?

  • Smaller ETH holders have sold more ETH recently, and whales are absorbing these sales.
  • ETH has continued its upward trend.

As a seasoned crypto investor with a knack for deciphering the intricacies of blockchain data, I find myself increasingly optimistic about Ethereum’s [ETH] trajectory. The whale activity we’ve seen recently is reminiscent of the DotCom era, where the big fish would gobble up shares, fueling speculation and setting the stage for a bull market.


In the past few days, there’s been a remarkable surge in Ethereum [ETH] activity, with significant whale investors acquiring more than 280,000 ETH, which is roughly equivalent to a billion dollars, within a timeframe of about five days.

The buildup of this amount has sparked considerable debate regarding Ethereum’s potential direction, particularly since the value of the asset is hovering around $3,700.

Watching closely as transactions increase on the network and exchange flows adjust, we’re curious if Ethereum will maintain its upward trend or encounter a possible downturn instead.

Ethereum whale activity fuels optimism

The sharp increase in whale holdings, as shown by the blockchain information, highlights a rising trust among big investors.

This increase lines up with Ethereum’s recent price spike and its successful breach of the $3,500 price barrier.

Examination of the Santiment chart indicates a persistent increase in Ethereum (ETH) being added to wallets containing between 100,000 and 1 million ETH.

The charts showed that the whales switched to accumulation mode earlier in the month. The move could indicate a long-term bullish sentiment.

Exchange netflows reflect market behavior

A key metric supporting the bullish case is the net flow of Ethereum to and from exchanges. Analysis of Glassnode data revealed a significant fluctuation in the last few weeks.

On the other hand, there appears to be a higher withdrawal of ETH from exchanges, indicating that traders may be transferring their assets.

The pattern of money transfers suggests that the ‘whale’ activity has had an influence, counteracting the selling pressure from individual investors.

Based on my years of trading and investing experience, I believe that this trend suggests a decreased probability of immediate selling pressure. If this holds true, it could help to stabilize Ethereum’s price, providing some relief for investors like myself who have been closely monitoring the market. This potential development aligns with my personal strategy of seeking long-term growth and avoiding unnecessary volatility in my portfolio.

Challenges to Ethereum sustaining momentum

Although the positive indicators are strong, there’s still potential for risk. The Ethereum price is approaching levels that might lead to an overbought situation, possibly causing a temporary dip. At present, Ethereum is being traded at approximately $3,709, showing a slight upward trend.

Additionally, we noticed that the 50-day Moving Average (MA) is approaching a point where it may surpass the 200-day MA, which is referred to as a Golden Cross event.

 Read Ethereum’s [ETH] Price Prediction 2024-25

Recently, large investors (whales) in Ethereum have been buying more of the asset, and some positive trends on its blockchain suggest potential profits may be coming. Nevertheless, it’s important to exercise caution because the asset’s overbought status as indicated by technical indicators could lead to selling pressure from those looking to cash in, or profit-taking.

It seems likely that Ethereum will continue to rise strongly as long as the overall market situation remains favorable.

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2024-12-01 17:11