Ethereum Whales Purchase $126 Million Worth of Ethereum
Cryptocurrency Whales have started accumulating large amounts of Ethereum (ETH) in what appears to be a preparation for a price surge. This activity started last week after the price of Ethereum managed to rebound after a bad price crash. This recent bullish movement present in the market is an indication that the asset is constantly rebounding from the top altcoins.
The most recent data from IntoTheBlock says Ethereum recorded huge outflows. It says that Ethereum, worth over $126 million, was withdrawn from different cryptocurrency exchanges this week. This major accumulation trend of Ethereum is coming at a time when the speculated date of spot Ethereum ETF approval is drawing closer.
The Securities and Exchange Commission (SEC), on July 17, approved the anticipated change of rules to enlist two new spot ETFs. The official announcement from the two major Ethereum ETF filers: the Grayscale Ethereum Mini Trust (owned by Grayscale) and ProShares Ethereum ETF. The two spot ETFs were approved and slated to be traded on the New York Stock Exchange (NYSE) Arca Inc.
Ethereum Value Drops, Maintains Position at Bullish Zone
Trading of the Ethereum spot ETF will officially begin after the S-1 filings have been approved. The price of Ethereum dropped by 1.48% today amid the trending story of the Whale accumulation. Ethereum is trading at $3,408.57 as of press time, still standing strong at 10.9% in the past seven days.
Amid the decrease in value in the early hours of today, Ethereum is still seen around the bullish zone. However, the wider prospects of the Ethereum assets are looking good, with a good market prospect. This situation is expected to boost the price of Ethereum in the long run. Whales are expecting a bullish trend from Ethereum, as seen in the ongoing accumulation trend by the whales.
Matrixport, a cryptocurrency financial service provider and another major wallet participant linked to Ethereum has taken a definite step by withdrawing 16,300 units of ETH, valued at $51.1 million, from the Binance exchange. This is happening amid market turbulence, with more reports stating that the same wallet has constantly withdrawn significant units of Ethereum from different exchanges since March 29 and March 29.
Global Cryptocurrency Index Drops by 17%; Analysts Recalls Similar Scenarios
Records obtained from Matrixport say that a total of 67,286 ETH, worth almost $228.33 million, at $3,393 has been withdrawn so far. CoinMarketCap has reported that the total cryptocurrency index dropped by 17% over the weekend, causing it to lose almost $430 billion in market capitalization.
Recall that in 2023, Lookonchain reported that Justin Sun, the founder of Tron Blockchain and a prominent cryptocurrency entrepreneur, made a similar move, transferring 23,000 ETH, valued at $43 million, into the Poloniex exchange. Sun also initiated another major transfer, a 6,500ETH in December of the same year, to Poloniex without a formal statement linked to the action.
Coincidentally, the price of Ethereum dropped significantly the same month, falling from $1,350 to $1,151 a few weeks after the transaction. Analysis on the Coingape platform believes that the $126 million transaction by Ethereum Whales may be a replica of Justin Sun’s strategy, as it may be a situation of whales getting ready for a major price drop, unlike the popular belief of a price spike.
Experts Believe Whales Maybe Reciprocating Sun’s Strategy
Sequel to the observation by Coingape, Mushumir Butt, a market watcher with U.Today, also recalled a similar scenario on January 25 2024, where Sun had transferred another batch of 10,000 ETH to the same exchange. The young cryptocurrency entrepreneur had sent approximately 67,500 ETH, valued at $126 million, to the Poloniex exchange in seven different transactions.
In April 2024, Daily Hodl reported that Whales bought 132,054 ETH, valued at $420 million. This new purchase was traced to a new whale wallet. 7,182 ETH, valued at $23.06 million, was withdrawn from Binance a few days later.
Another withdrawal within that time range was 11,892 units of ETH, valued at $37.77 million, which was transferred internally from the Binance exchange. The same whale was seen depositing an undisclosed considerable number of Ethereum from Compound (COMP), a reputable Ethereum lending and borrowing platform.
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