The popular cryptocurrency, Ethereum (ETH), is witnessing a significant surge in interest from its large holders, as its price has recently crossed the three-month high of $2,800. In the last 24 hours, Ethereum saw an 8% increase and is currently floating around the $2,800 mark, pushing its market cap over $336 billion. The trading volume for Ethereum also soared by 27%, reaching a staggering $38 billion.
Earlier in the day, Ethereum reached a local peak of $2,870, but a swift correction was observed due to short-term profit-taking. This price hike was accompanied by a substantial increase in large-scale transactions, often referred to as ‘whale transactions’. Data provided by IntoTheBlock indicates a 60% surge in large Ethereum transactions, defined as those worth at least $100,000, on Wednesday, November 6th. This propelled the number of unique transactions to a three-month high of 7,270.
Parallel data from ITB reveals that these large holders transferred over $8.7 billion worth of Ethereum yesterday alone. However, there has been a noticeable slowdown in the accumulation of Ethereum by these whales over the past week. The net inflow of the asset by large holders declined from 91,300 ETH on October 31st, to a mere 5,930 ETH on November 6th.
This reduction in whale activity may indicate a level of uncertainty amongst large Ethereum holders. The recent market surge has been largely influenced by news surrounding the U.S. presidential election.
Of note is the fact that 53% of the total Ethereum supply is held in whale addresses. If these holders begin depositing their Ethereum into exchanges, it may trigger a fresh wave of fear, uncertainty, and doubt, commonly referred to as FUD, amongst retail investors.
According to ITB data, the Ethereum exchange net inflow dipped to 4,170 ETH yesterday, following a significant decline from Tuesday’s 71,720 ETH. Currently, 71% of Ethereum holders are in profit. A mild profit-taking scenario is considered normal, as over 74% of the addresses have held Ethereum for more than a year.
In conclusion, Ethereum’s recent price surge and the increase in large transactions underscore the continued interest and speculation in the cryptocurrency market. This dynamic, coupled with the response of large holders to market changes, continues to keep the cryptocurrency landscape both exciting and unpredictable.
