Ethereum (ETH) is currently facing a challenge to surpass the $4,000 mark following recent developments with the Securities and Exchange Commission (SEC). There are rumors circulating that Ethereum could be following in Bitcoin’s (BTC) footsteps, as Bitcoin experienced a notable price increase after the approval of Bitcoin ETFs. The removal of barriers for the launch of Ethereum ETFs is believed to have sparked significant activity from whales, supporting Ethereum’s upward trajectory.
Whale Purchases Ethereum (ETH)
SpotOnChain, a well-known analysis platform, recently shared an important post on X on June 3. The post revealed that a whale bought approximately $26.7 million worth of ETH at the $3,814 level and transferred it to Binance. This Ethereum whale, known for transferring ETH during bear markets and moving them to exchanges when prices increase, currently holds 36,785 ETH valued at $141 million. The whale has seen a growth rate of 57.9% on its assets, earning a profit of $76.6 million.
Ethereum Withdraws from Exchanges
After the approval of spot Ethereum ETFs in the United States on May 23, there was a significant withdrawal of $3 billion worth of Ethereum from centralized crypto exchanges, indicating a potential supply shortage. According to data from CryptoQuant, Ethereum reserves on exchanges decreased by 797,000 units between May 23 and June 2, dropping to $3.02 billion. This decline in exchange reserves suggests that investors are holding onto their assets and moving them to wallets instead of selling quickly.
Increase in Ethereum Holdings
There has been an increase in Ethereum whale activity this year, with a noticeable rise in large ETH investments. Data from IntoTheBlock shows that the number of wallets holding over 1% of the total ETH supply has increased from 36% to 41%. Santiment data from June 4 also indicated a similar trend, with whales holding between 10 million and 100 million ETH accumulating more assets since May 20, coinciding with changes in the SEC’s stance on spot Ethereum ETFs. This accumulation continued after the approval of spot ETH ETFs on May 23. Meanwhile, whales holding between 1 million and 10 million ETH seem to be profiting, while exchange reserves continue to decline.
Please note that the information provided in this article should not be considered as investment advice. Cryptocurrencies are highly volatile and carry inherent risks, so investors should conduct their own research before making any decisions.
