Ethereum has been experiencing a protracted period of bearish price motion. The altcoin has been relatively quiet, with its price declining, leaving many investors and traders feeling uncertain. Nevertheless, a notable bullish proponent continues behind the scenes, indicating a possible shift in market dynamics.
In the last few days, on-chain data has revealed a significant accumulation pattern for ETH. This bullish catalyst has materialized in the form of whale accumulation, where large investors, commonly called “whales,” have been making substantial purchases of Ethereum. These whales have acquired tons of of 1000’s and 1000’s of dollars price of ETH, signaling their anticipation of an imminent price surge.
Ethereum Whales Buy $440 Million Price Of ETH
This intriguing accumulation pattern was delivered to light on social media platform X by renowned crypto analyst Ali Martinez. Consistent with the information shared by Martinez from CryptoQuant, Ethereum whales have recently made a significant move by accumulating 126,000 ETH, valued at roughly $440 million, inside a remarkably short span of 48 hours.
The CryptoQuant evaluation chart revealed that this buying trend was primarily driven by addresses holding greater than 100,000 ETH each, classifying them as ultra-whales. These ultra-whales represent essentially essentially the most influential and substantial investors inside the Ethereum market, and their activities often have a pronounced impact on market trends and investor sentiment.
Further evaluation of the chart indicates a notable increase in the entire balance held by this elite group of traders. On June 28, the cumulative holdings of those ultra-whales stood at around 5.1 million ETH. Nevertheless, by June 30, this figure had surged to over 5.23 million ETH. This upward trajectory in holdings becomes way more pronounced once we consider the balance from an earlier point, which was 5.05 million ETH on July 22.
Why The Accumulation?
The buildup could also be attributed to whales positioning themselves for a well-anticipated bull run in light of Spot Ethereum ETFs. Investors are beginning to perceive a shift in these spot ETFs, with collective inflows into other Ethereum ETFs starting to outpace outflows from Grayscale’s ETHE.
The launch of those Spot Ethereum ETFs has yet to translate right right into a price rally for Ethereum. Their launch has kicked off a sell-the-news event. Since launch, ETH has experienced a decline of roughly 12.8% and recently bottomed at $3,090. Despite this downturn, many analysts maintain a bullish sentiment for Ethereum. This shows that investor confidence stays strong, even when this sentiment is essentially psychological.
On the time of writing, Ethereum is trading at $3,150. On-chain buying trend shows that many whales are preparing for an altcoin rally that’s set to be spearheaded by Ethereum. On-chain data from CryptoQuant reveals that limit buy order volumes for altcoins are increasing across various exchanges. This has caused the creation of giant buy partitions, which in turn reflect preparations for an altcoin rally.
Featured image created with Dall.E, chart from Tradingview.com