Within the last three weeks, the number of Ethereum (ETH) addresses holding over 10,000 units of the coin increased by 3%. According to crypto analyst Ali Martinez, this development indicates an important spike in buying pressure.
What This Means for Ethereum’s Price
A rise in large holders’ transactions suggests increased institutional interests or whales accumulating Ethereum. Typically, when this happens, the price of Ethereum is anticipated to go up.
The number of #Ethereum addresses holding 10,000+ $ETH has increased by 3% in the last three weeks, signaling an important spike in buying pressure! pic.twitter.com/7qq5HgGP37
— Ali (@ali_charts) June 9, 2024
This is because the growing presence of whales indicates confidence in Ethereum’s future potential, which can boost overall market sentiment and attract more buyers.
Moreover, large investors are less likely to be influenced by short-term market volatility. Accordingly, they may be more inclined to hold Ethereum for longer, leading to potential stability for the cryptocurrency.
In a parallel development, an Ethereum Foundation-related wallet allegedly deposited 15,254 ETH worth approximately $56.1 million into the Kraken exchange. This introduces complexity to the market dynamics.
More Ethereum Whales Emerge
Additionally, a pre-mine address containing about 6,000 ETH recently resurfaced after laying dormant for almost nine years. Following the account reactivation, the holder carried out two separate transactions involving transferring 1 ETH to different addresses.
In Singapore, the DBS Bank has been identified as a larger holder of Ethereum. According to an earlier report from Crypto-Vanguard, a blockchain address that appears to be owned by DBS holds 173,753 ETH, worth about $650 million.
The increased whale involvement on Ethereum may be due to expectations for the launch of a spot Exchange-Traded Fund (ETF). While many believe the launch could spur more increases for Ethereum, trading is what will ascertain its likelihood. Notably the SEC chairman Gary Gensler says applicants must satisfy queries of the regulatory body before this trading can commence.
As of this writing, ETH is trading at $3,670, representing a 0.48% decrease in the past day. However, the trading volume increased by 4.9% to 8.8 billion, suggesting renewed interest that compliments current trends.
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