According to on-chain data, Ethereum whales have been on a significant buying spree recently, which is a sign that the ETH price could be bullish.
Ethereum whales recently added 200,000 ETH to their holdings.
As analyst Ali Martinez explains in a new post on X, ETH whales have been buying recently. A “whale” is an Ethereum investor who holds between 10,000 and 100,000 ETH in their wallets.
At the current cryptocurrency exchange rate, the lower bound of this range is $26.4 million, and the upper bound is $264 million. Holders of this group would be among the largest groups in the market.
In general, the more coins an address holds, the greater its influence on the network, so whales holding huge amounts of coins can be considered an important part of the ecosystem.
For this reason, their actions are worth watching, as even if they don’t directly impact assets, they can still tell us something about the psychology of these big traders.
Now, a chart shared by the analyst shows the trend of total balances held by Ethereum investors large enough to be classified as whales.
The value of the metric appears to have shot up in recent days | Source: @ali_charts on X
As you can see in the graph above, Ethereum investors holding between 10,000 and 100,000 ETH have been increasing their total balances since the crash in early August.
This suggests that these big investors saw the recent price as a profitable entry point into the cryptocurrency. Interestingly, there has been a particularly sharp buying frenzy over the past few days, as can be seen from the sudden spike in the chart.
Whales added over 200,000 ETH (around $530 million) to their total holdings in this rush, which is a remarkable amount.
Given the spike in the indicator as ETH successfully recovered, whales may have viewed this surge as confirmation of further strength ahead and decided to place additional bets on the asset.
But of course, it remains to be seen whether this bet by Ethereum whales will pay off and the price of ETH will surge from here.
In any case, this indicator can be monitored soon, as any changes can indicate where these investors’ confidence is headed. A decline naturally means that whales are losing hope in the asset.
ETH Price
Ethereum was trading above $2,800 just a few days ago, but now appears to be in a downtrend, hovering around $2,640.
Looks like the price of the asset has slipped down over the last few days | Source: ETHUSD on TradingView
Dall-E, Featured Image from CryptoQuant.com, Charts from TradingView.com