Ethereum Whales Amass $1.4B as Spot ETFs Surge and Price Hits $3,300

Key Insights:

• Ethereum whales accumulate 430K ETH, driving a price rally from $2,600 to $3,300.
• Spot ETH ETFs hit $1.63B weekly volume, signaling increased institutional interest.
• ETH/BTC ratio nears key support at 0.03 BTC, possibly setting up for the next bull run.

Recent on-chain data reveals that Ethereum whales—defined as addresses holding between 10,000 and 100,000 ETH—have accumulated a substantial amount of ETH in the past two weeks. According to reports, over 430,000 ETH, valued at approximately $1.4 billion, have been acquired by this group, coinciding with a significant price rally.

Whale Activity Drives Market Movements

Whale transactions often play a crucial role in the cryptocurrency market. The increase in holdings by large Ethereum addresses appears to have started when ETH was trading between $2,600 and $2,800. This accumulation phase was followed by a price surge that saw Ethereum reach highs of $3,300.

The accumulation phase indicated bullish sentiment, with whales adding to their holdings at lower price levels. 

However, after Ethereum’s price peaked above $3,300, there was a slight decrease in whale supply, suggesting some whales might have begun distributing or selling their assets.

Ethereum Price Faces Pullback After Hitting $3,300

Ethereum experienced a pullback after reaching its recent high of $3,300. As of press time, ETH was trading at $3,043.72, representing a 3.30% decline in the past 24 hours. Despite the short-term decline, Ethereum has gained 4.30% over the last week, reflecting a generally positive trend in recent weeks.

Market analysts attribute this retracement to normal profit-taking activities and a slight reduction in whale holdings. Ethereum’s current market cap stands at $366.74 billion, with a 24-hour trading volume of over $31.56 billion. These figures indicate healthy liquidity and continued investor interest.

Spot Ethereum ETFs Record Significant Volume Surge

The growing interest in Ethereum is also evident in the rising trading volumes of spot Ethereum Exchange-Traded Funds (ETFs). Over the past week, ETH ETFs reported their highest weekly volumes since August, exceeding $1.63 billion, a 44% increase compared to the previous week.

Initially, when ETH ETFs were launched, their trading volume averaged $566 million per day. However, after an initial spike, daily trading volumes declined, averaging about $168 million between mid-August and late October. This trend reversed recently, with daily volumes climbing to $326 million in the past week.

Source: The Block Data

Historical patterns from Bitcoin ETFs suggest that such volume trends often lead to sustained price increases. For instance, Bitcoin ETFs saw their trading volumes spike, followed by a significant rally in Bitcoin’s price. If the same trend applies to Ethereum, heightened ETF activity could further bolster ETH’s price in the coming weeks.

ETH/BTC Ratio Approaches Key Long-Term Support

In the ETH/BTC trading pair, Ethereum has shown relative weakness against Bitcoin in recent months. Analysts suggest that the ETH/BTC ratio is approaching critical support levels around 0.03 BTC per ETH, which aligns with historical lows seen during previous bear markets.

This level was tested multiple times during the 2018-2019 bear market and has served as a strong foundation for future rallies. Some market observers predict that the ratio could bottom out by early 2025, aligning with potential macroeconomic shifts.

According to Benjamin Cowen the ETH/BTC ratio has historically followed cyclical patterns that correlate with global liquidity changes. Cowen remarked, 

“If ETH/BTC reaches these support levels, it could provide a solid base for another bull run, similar to past cycles.” 

However, the timing of such a rally might depend on broader economic conditions, including central bank policies and liquidity shifts.

The recent accumulation by Ethereum whales and the spike in ETF trading volumes indicate growing investor confidence in the asset. While Ethereum faces short-term price volatility, its broader market fundamentals remain strong.

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