Whales and retail investors began to show great interest in ETH. The price of ETH rose sharply and short positions were liquidated.
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Ethereum (ETH) was stagnant below the $3,200 level for quite some time, however, the recent pick-up in interest has pushed ETH past its previous price levels.
Whales enter
According to data from Lookonchain, a significant whale has been insisting on buying ETH and taking a long position in the ETH/BTC trading pair.
After the Bitcoin ETF was launched on January 10, investors borrowed 2,301 WBTC (equivalent to $119.75 million) from AAVE and converted it into 41,947 ETH at an interest rate of 0.055.
Over the past three days, the whale has spent $35 million and acquired 10,952 ETH at a price of $3,196.
Significant investors with significant capital making big bets on ETH can bolster overall confidence in the cryptocurrency.
This could attract other investors who might have been sitting on the sidelines, leading to a snowball effect of buying pressure.
It’s not just whales that are showing interest in Ethereum, demand for Ethereum is also growing among retail investors.
According to AMBCrypto’s analysis of Santiment data, addresses holding 0.001 to 1 ETH have begun to accumulate large amounts of ETH.
The interest in ETH from both whales and retail investors suggests that sentiment across all sectors of the cryptocurrency market is relatively bullish on ETH.
Due to these factors, the price of Ethereum has risen significantly. At press time, ETH is trading at $3,311.78, with its price surging 6.08% in the past 24 hours.
How are the holders doing?
The move sparked more bullish speculation on an ETH ETF, adding more fuel to ETH’s rally.
Surprisingly, despite the recent price surge, ETH’s MVRV ratio remains negative, suggesting that most holders remain unprofitable.
It is safe to assume that these holders are likely waiting for further price appreciation before indulging in profit-taking.
The sudden rise in ETH prices also led to the liquidation of a large number of short positions, amounting to as much as $33.02 million.