ETH whale activity is nothing new to anyone investing in cryptocurrency. Traders, analysts, and investors constantly monitor whale activity to understand the movements of deep-pocketed crypto investors. Bitcoin (BTC) and Ethereum (ETH) are the two largest cryptocurrency projects that have been a favorite of crypto whales for years.
Earlier this year, whales were seen moving out of Ethereum, but the trend has changed in the past few weeks. According to data published by IntoTheBlock, whales have doubled their interest in Ethereum in the past week. In the latest move, an Ethereum whale bought a total of 97,220 ETH tokens worth $254 million on October 15.
ETH Whales Continue Despite Increased Exchange Inflows
Despite the increase in exchange inflows, Ethereum whales have been actively buying ETH tokens over the past few weeks. Cryptocurrency experts believe that whales are once again active in the largest altcoin of all time as Ethereum price has surpassed the psychological $2,600 level for the first time in weeks.
They also stated that typically, an increase in net inflows of a digital asset indicates a large accumulation. According to industry data, Ethereum exchanges have recently switched from outflows to inflows. Ethereum exchanges saw a net inflow of 15,000 ETH on Tuesday compared to a net outflow of 5,700 Ethereum recorded on October 13. Crypto analysts noted that this could be a clear sign of short positions from large whales.
Ethereum Price Back Above $2,600
Ethereum price has broken through the psychological barrier of $2,600 for the second time since hitting a recent low of $2,238.71 on September 31. The last time ETH price broke $2,600 was on September 23, when it was trading at $2,673.82. After remaining above $2,600 until October 2, when it saw another bout of selling pressure that pushed Ethereum price even lower to $2,489.70. Analysts believe that the recent large increase is the result of two weeks of bearish price consolidation.
Ethereum Price Volatility Assessment
Speaking to The BIT Journal on Wednesday, crypto analysts said that Ethereumâs chart hinted at a major profit-taking moment between 02:00 PM UTC and 03:00 PM UTC on Tuesday. The profit-taking sent Ethereumâs price plummeting from an intraday high of $2,685 to $2,540 within an hour, wiping out about $16.6 billion from Ethereumâs market capitalization.
At 07:30 AM EST on Wednesday, Ethereum was trading at $2,636.76, up 1.15% or $30.04 in the past 24 hours and soaring 15.74% or $358.65 in a month.
What's Coming to Ethereum
Ethereum is the largest altcoin in the cryptocurrency market. With a market capitalization of $317.99 billion and a daily trading volume of $23.05 billion, Ethereum has the potential to create new uptrends or downtrends in the market. However, analysts say Ethereum lacks a strong catalyst to help it continue its growth momentum.
Final thoughts
Ethereum has been a leading cryptocurrency project for many years. Like Bitcoin, Ethereum has a legacy that has inspired many other cryptocurrency projects to find success. However, Ethereum has faced a lot of criticism over the past few months, which has sparked a debate among cryptocurrency enthusiasts about whether it has what it takes to lead the altcoins. However, Ethereum is considered by many experts to be a sleeping giant this year, which means it could make a bullish recovery in the coming weeks.
The increase in whale activity could go either way. On one hand, it could be a sign of upcoming selling pressure, but on the other hand, it could be a sign of strong buying interest in the crypto project. Analysts and crypto enthusiasts are divided on whether Ethereum will continue to move towards $3,000 in the coming weeks amid high expectations for an October bull run. However, one thing is for sure: if Ethereum manages to stay above $2,600 in the next few days, it could open the door for another rally to $3,000.
