Ethereum (ETH) is currently pushing against the $4,000 level amid recent developments involving the Securities and Exchange Commission (SEC). Speculations are growing that Ethereum might follow a similar path as Bitcoin (BTC) in terms of price movement, with Bitcoin experiencing a notable price surge following the approval of Bitcoin ETFs. The removal of obstacles to the introduction of Ethereum ETFs is also believed to have sparked significant activity among large investors, supporting the upward movement of Ethereum.
Whale Purchases Ethereum (ETH)
SpotOnChain, a well-known analytics platform, made a significant announcement on June 3 regarding a whale purchasing Ethereum at the $3,814 level. Approximately $26.7 million worth of ETH was transferred to Binance as a result. The Ethereum whale in question, known for moving ETH to wallets during bear markets and transferring them to exchanges during price surges, currently holds 36,785 ETH valued at $141 million. This whale, recognized for its trading strategies, has seen a 57.9% increase in assets, resulting in a profit of $76.6 million.
Ethereum Withdraws from Exchanges
After the approval of spot Ethereum ETFs in the U.S. on May 23, a total of $3 billion worth of Ethereum was withdrawn from centralized crypto exchanges, signaling a potential scarcity in supply. Data from CryptoQuant shows that between May 23 and June 2, Ethereum reserves on exchanges decreased by 797,000 units to $3.02 billion. This drop in exchange reserves suggests that investors are opting to hold onto their assets and move them to wallets rather than engage in quick selling.
Increase in Ethereum Holdings
There has been a noticeable increase in the activity of Ethereum whales this year. Data from IntoTheBlock indicates a significant rise in large ETH investments, with the number of wallets holding over 1% of the total ETH supply increasing from 36% to 41%. Santiment data from June 4 corroborates this trend, showing that whales holding between 10 million and 100 million ETH have been accumulating assets since May 20, coinciding with the news of changes in the SEC’s stance on spot Ethereum ETFs.
This accumulation trend continued following 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 have experienced a notable decline.
Disclaimer: The information presented in this article does not constitute investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct their own research before making investment decisions.