$440M Ethereum Splurge Stokes Anticipation of an Imminent Rally

• Ethereum whales have made a massive splurge.
• The move comes as analysts anticipate a shift in ether ETF dynamics.
• The whale splurge has stoked anticipation of an imminent price bounce.

The crypto market appears to be cooling off after a brief rally at the beginning of July 2024, with most major crypto assets, including ETH , shedding about half of the gains made in the rally.

The price of ETH, for one, has failed to react even after the SEC’s recent approval of spot ether ETFs . Amid the market doldrums, however, a class of investors notorious for preempting and sometimes even influencing market moves have made a massive splurge, sparking questions about whether the tide is set to turn for ETH.

$440M in ETH Scooped up by Whales

Ethereum whales are making a big splash. In the past 48 hours, this class of investors with over 100,000 ETH in their wallets have accumulated over 126,000 ETH worth roughly $440 million, per CryptoQuant data shared by crypto analyst Ali Martinez.

The buying spree comes amid a perceived shift in spot ether ETF flows. Outflows from Grayscale’s ETHE fund have significantly declined this week, with analysts predicting “lots of green days” ahead for the recently approved products, which could positively impact price.

Unsurprisingly, the recent buying spree has also stoked anticipation of an imminent price bounce, as whale accumulation typically precedes asset rallies.

ETH Rally Imminent?

Following the approval of spot ether ETFs, several analysts have adopted a bullish stance on ETH, with some, like Bitwise Chief Investment Officer Matt Hougan, calling new all-time highs by year-end. Despite these views, the short-term outlook for ETH is murkier. 

In an X post on Thursday, August 1, prominent crypto trader “Poseidon” suggested that the asset was likely to first retrace to the $2,800 price point before kicking off a rally to all-time highs. The view came as ETH trades below the mid-way point of a multi-month range.

According to CoinMarketCap data at the time of writing, ETH is trading at the $3,190 price point, representing an over 4% decline in the past 24 hours.

On the Flipside 

• Several other factors affect the price of crypto assets like ETH, including geopolitical tensions and macroeconomic uncertainty.

Why This Matters

The action of crypto whales can often influence and preempt market moves. The recent ETH splurge suggests that these large investors remain bullish on the asset despite lackluster price action.

Read this for more on ETH:
Ether ETF Flows Flip Positive with $34M Inflows: Is the Worst Over?

See how Space and Time bolsters Karak’s vision:
How Space and Time is Accelerating Karak’s Universal Web3 Security Vision