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Ethereum Whales Dive In: Long-Term Recovery or Short-Term Peak?

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  • Whales along with retail investors started showing huge interest in ETH.
  • The price of ETH rose significantly and short positions were liquidated.

Ethereum (ETH) has been stagnant below the $3,200 level for quite some time, but a recent resurgence in interest has pushed ETH past its previous price levels.

Whales come in

According to Lookonchain data, a significant whale continued to buy ETH and enter long positions in the ETH/BTC trading pair.

The investor borrowed 2,301 WBTC (equivalent to $119.75 million) from AAVE and converted it into 41,947 ETH at a rate of 0.055, following the launch of the Bitcoin ETF on January 10.

In the last three days, the whale spent 35 million USDC to acquire 10,952 ETH for $3,196.

A major investor with significant capital placing a large bet on ETH could increase overall confidence in the cryptocurrency.

This could attract other investors who may be hesitant, leading to a snowball effect of buying pressure.

Source:

It wasn't just whales that showed interest in ETH, demand from private investors for Ethereum also grew.

Addresses holding anywhere from 0.001 to 1 ETH began accumulating large amounts of ETH, according to AMBCrypto's analysis of Santiment's data.

The interest in ETH from both whales and retail investors suggested that sentiment across all sectors of the crypto market is relatively bullish around ETH.

Source: Santiment

As a result of these factors, the price of ETH increased significantly. At the time of writing, ETH was trading at $3,311.78 and its price had risen 6.08% over the past 24 hours.

How are the holders doing?

This move led to more bullish speculation around ETH ETFs, adding more momentum to ETH's rally.

Surprisingly, despite the recent price increase, the MVRV ratio for ETH remained negative, indicating that most holders remained unprofitable.


Read the Ethereum (ETH) price forecast for 2024-2025


It may be safe to assume that these holders might wait for prices to rise further before indulging in profit-taking.

Source: Santiment

The sudden increase in the price of ETH also caused a large number of short positions to be liquidated, amounting to $33.02 million.

Source: Coinglass

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