Ethereum, the second-largest cryptocurrency by market capitalization, has been experiencing a surge in price and whale activity, reaching a three-month high amid a bullish market trend. The price of Ethereum (ETH) has surpassed the $2,800 mark, gaining 8% in the past 24 hours and trading around $2,800. This surge has propelled Ethereum’s market cap to over $336 billion, with a daily trading volume of $38 billion.
The price hike of Ethereum was accompanied by a significant increase in whale activity, with large holders making substantial transactions. Data from IntoTheBlock shows that Ethereum recorded a 60% surge in the number of large transactions, worth at least $100,000, on Wednesday, Nov. 6, reaching a three-month high of 7,270 unique transactions. Large holders moved over $8.7 billion worth of ETH on that day.
However, despite the surge in whale activity, the accumulation of ETH by large holders has been slowing down over the past week. Data from IntoTheBlock indicates that the net inflow of ETH by large holders declined from 91,300 ETH on Oct. 31 to 5,930 ETH on Nov. 6. This decline in whale activity could suggest uncertainty among Ethereum whales, especially as the market surge has been influenced by news surrounding the U.S. presidential election.
It is worth noting that a significant portion of the ETH supply, 53%, is held in whale addresses. If these whales start depositing their ETH into exchanges, it could potentially trigger fear, uncertainty, and doubt (FUD) among retail investors. The Ethereum exchange net inflow dropped to 4,170 ETH on the day following a major decline from Tuesday’s 71,720 ETH, according to IntoTheBlock data.
Despite the potential for profit-taking among ETH holders, the majority of addresses have been holding ETH for over a year, with 71% of holders currently in profit. A mild profit-taking scenario would be considered normal in this context. The current market dynamics suggest a cautious optimism among investors as they navigate the volatile cryptocurrency landscape.
In conclusion, Ethereum’s price surge and whale activity reaching a three-month high indicate a growing interest in the cryptocurrency among large holders. However, the slowing down of whale accumulation and potential profit-taking scenarios highlight the uncertainty that still looms over the market. As Ethereum continues to make headlines, investors will be closely monitoring the developments in the cryptocurrency space.