Whales on the Ethereum (ETH) network have recently bought up large amounts of coins, according to on-chain data from the analytics platform IntoTheBlock. In total, these wealthy addresses accumulated nearly 600,000 ETH tokens, with a combined value of $1.6 billion.
This buying spree mainly took place between October 21 and 24, when the price of Ethereum fell from around $2,750 to $2,480. This indicates that the whales are using the price drop to purchase additional coins.
Increase after major purchases
After the whales purchased $1.6 billion worth of ETH, the value of the largest altcoin increased significantly. The Ethereum price climbed from $2,480 to $2,670, which represents an increase of approximately 7.6%.
The on-chain data also shows that this accumulation was accompanied by a large outflow of ETH tokens from exchanges. On October 29 alone, all major trading platforms collectively saw an outflow of nearly $280 million worth of Ethereum.
Whale accumulation bullish for Ethereum price
The outflow of coins from exchanges is often seen as a bullish sign for ETH price development. The less Ethereum is available on trading platforms, the more difficult it becomes for investors to quickly purchase new coins. This also signals strong long-term conviction among major investors.
Limited success for Ethereum ETFs
Despite the large accumulation by whales, interest in Ethereum Spot Exchange Traded Funds (ETFs) remains limited. Since the launch of these funds in July, more than $485 million in capital has flowed out. This is in stark contrast to the Bitcoin ETFs. The eleven ETFs of the largest cryptocurrency have already attracted more than $20 billion, leading to a new all-time high in March this year.
Source: https://newsbit.nl/crypto-whales-kopen-gigantische-aantallen-ethereum-bullish-teken-voor-de-koers/
