ethereum has been experiencing a prolonged period of eth/ethereum-price-battles-3350/” rel=”nofollow noopener” target=”_blank”>Bearish Price ActionThe altcoin has been relatively quiet, with its price on the decline, leaving many investors and traders with a sense of uncertainty. However, one prominent proponent of optimism remains behind the scenes, signaling a possible shift in market dynamics.
In recent days, on-chain data has revealed a ethereum/ethereum-high-exchange-outflows-bearish/” rel=”nofollow noopener” target=”_blank”>significant accumulation pattern for eth. This bullish catalyst has materialized in the form of whale accumulation, where large investors, commonly referred to as “whales,” have been making substantial purchases of ethereum. These whales have acquired hundreds of millions of dollars worth of eth, signaling their anticipation of an imminent price surge.
ethereum whales buy $440 million worth of eth
This intriguing pattern of accumulation was x.com/ali_charts/status/1818697130627973625″ rel=”nofollow” target=”_blank”>brought to light on social media platform x by renowned cryptocurrency analyst Ali Martinez. According to data shared by CryptoQuant’s Martinez, ethereum whales have recently made a significant move by accumulating 126,000 eth, valued at approximately $440 million, in a remarkably short span of 48 hours.
CryptoQuant’s analytics chart revealed that this buying trend was primarily driven by addresses holding over 100,000 eth each, classifying them as ultrawhales. These ultrawhales represent the most influential and substantial investors in the ethereum market, and their activities often have a pronounced impact on market trends and investor sentiment.
A closer look at the chart indicates a notable increase in the total balance held by this elite group of traders. On June 28, the cumulative holdings of these ultra-whales stood at around 5.1 million eth. However, by June 30, this figure had increased to over 5.23 million eth. This upward trajectory of holdings becomes even more pronounced when we consider the balance from a previous point, which was 5.05 million eth on July 22.
Why the accumulation?
The accumulation can be attributed to whales positioning themselves for a much-anticipated bull run in light of the ethereum spot ETFs. Investors are starting to Perceiving a change in these spot ETFs, with collective inflows into other ethereum ETFs Starting to overcome Grayscale's ETHE outflows.
The launch of these spot ethereum ETFs has yet to translate into a rally in the price of ethereum. Their launch has kicked off a ethereum/eth-price-spot-ethereum-etfs-2/” rel=”nofollow noopener” target=”_blank”>news sale eventSince its launch, eth has seen a drop of approximately 12.8% and recently bottomed out at $3,090. Despite this drop, many analysts maintain a bullish sentiment for ethereum. This shows that investor confidence remains strong, even if this sentiment is largely psychological.
At the time of writing, ethereum is trading at $3,150. The on-chain buying trend shows that many whales are preparing for an altcoin rally that will be led by ethereum. CryptoQuant’s on-chain data reveals that limit buy order volumes for altcoins are increasing on several exchanges. This has led to the creation of massive buy walls, which in turn reflect preparations for an altcoin rally.
Featured image created with Dall.E, chart from Tradingview.com
