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- Ethereum whales accumulated 126,000 ETH in 2 days, worth $440 million.
- Only 10% of Ethereum is held on exchanges, indicating reduced selling pressure.
According to a tweet from on-chain analyst Ali Martinez, Ethereum whales have accumulated more than 126,000 ETH in two days, totaling nearly $440 million. Market analysts and crypto enthusiasts are closely monitoring this significant accumulation.
Ethereum whales have accumulated over 126,000 $ETH in the last 48 hours, worth approximately $440 million! pic.twitter.com/hwHU0fAcdc
— Ali (@ali_charts) July 31, 2024
Why Are Whales Buying Ethereum Amid Price Decline?
The question on everyone’s mind is why these massive holders, known as whales, are buying so much ETH despite the recent price decline.
One of the key reasons is the anticipated price increase from the Ethereum ETF. Analysts believe that the introduction of an Ethereum ETF could result in more demand and higher pricing, as has already been witnessed with Bitcoin ETFs.
Although the performance of major cryptocurrencies tends to deteriorate, current buying activity can be seen as capitalizing on discounted pricing before a potential rally occurs in the future. At the time of writing, ETH is trading at roughly $2,985.21, down 5.20% over the last 24 hours.
This has made the $3,000 mark a critical landmark in determining the fate of the world’s largest altcoin by market valuation. The price movement around this level will be essential to determining Ethereum’s short-term prospects.
Furthermore, CNF earlier reported that more than 28% of Ethereum’s total supply had been staked, indicating that confidence in the network was growing. This staking shows that many investors want to keep their ETH for the long term, decreasing market supply and perhaps driving up prices.
Furthermore, only 10% of Ethereum is currently held on exchanges, down from previous highs. Over the last year, Ethereum exchange reserves have declined from over 20 million ETH to 17 million ETH.
This decrease in exchange reserves indicates that more ETH is being transferred to private wallets, which could alleviate selling pressure and encourage price hikes.
Furthermore, we reported on a financial analyst’s prediction that the Ethereum ETF will have assets under management (AUM) of $10 billion by the end of the year.
This prediction adds to our confidence in Ethereum’s future possibilities. The projected infusion of institutional investment via the ETF is expected to significantly enhance Ethereum’s market capitalization and price.
