Ethereum (ETH) Bulls Revvs Fueled by Increased Whales’ On-chain Activity

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As an experienced analyst, I’ve been closely monitoring the cryptocurrency market for several years now. The recent developments surrounding Ethereum (ETH) have caught my attention due to its significant potential for growth. With over $62 billion in TVL and a fully diluted valuation of about $435 billion, Ethereum is poised to benefit from the approval of spot Ether ETFs in various jurisdictions.

Ethereum (ETH), the leading platform for smart contracts and web3 applications, boasts an impressive total value locked (TVL) of over $62 billion. With a fully diluted market capitalization of approximately $435 billion and a daily trading volume averaging around $17.4 billion, Ethereum has emerged as a major player in the crypto world. The excitement surrounding this large-cap altcoin has reached new heights following the recent approval of spot Ether Exchange Traded Funds (ETFs) in the United States.

As a crypto investor, I’ve noticed an exciting development: the approval and subsequent listing of spot Bitcoin ETFs in the US markets. Shortly following this news, Bitcoin’s price reached new heights, setting yet another all-time high (ATH) for me and fellow investors.

Ethereum Whales on the Hunt

As more global authorities endorse the trading of spot Ethereum Exchange-Traded Funds (ETFs), similar to the US, there’s been a significant surge in optimistic feelings towards Ethereum. Based on data from market intelligence platform Santiment, over the past 48 hours, Ethereum wallets holding between 10,000 and 100,000 Ether have accumulated approximately 240,000 Ether, equivalent to around $840 million.

As an analyst, I’ve discovered that whales have purchased approximately $240,000 worth of Ethereum (ETH) during the latest price downturn, amounting to roughly $840 million in total.
— Ali (@ali_charts) June 12, 2024

Approximately 336,000 Ethers, equivalent to over $400 million, have been taken out of Coinbase Global Inc. (NASDAQ: COIN) within the last 24 hours, according to CryptoQuant’s observation. This marks the fifth instance this year where such a large amount of Ether has been withdrawn from the platform.

“Large Ethereum transactions worth between 400 million and 1.1 billion dollars each, observed in a single day, are unlikely to be made by individual investors. Instead, it’s more reasonable to assume that these substantial withdrawals are instigated by ‘whales’ or unidentified institutions,” CryptoQuant stated.

As an analyst, I’ve noticed that the recent withdrawal of Ethereum from centralized exchanges on June 12 could be explained by internal wallet maintenance. However, I want to draw your attention to a more intriguing observation made by CryptoQuant: large crypto investors, or whales, have been preparing for an Ethereum price surge. This assumption is supported by the fact that Ethereum’s balance on centralized exchanges has been shrinking in the past few months. Based on the latest data from on-chain analysis, Ethereum’s supply on these exchanges has reached multi-year lows.

Ethereum supply falls to an 8 year low on exchanges.

— Bitcoinsensus (@Bitcoinsensus) June 12, 2024

Ether Price Targets

As a researcher studying current market trends, I’ve noticed the anticipation of interest rate cuts in the United States. Veteran analyst Peter Brandt has cautioned against shorting Ether at this time. Furthermore, the US dollar has been weakening against global currencies. With heightened crypto speculation, there’s a strong possibility that Ether could reach new all-time highs.

A cryptocurrency expert pointed out that Ether’s value in US dollars might be shaping up as a potential head and shoulders (H&S) chart configuration. However, there’s a possibility of a sudden price surge due to a short squeeze, which could potentially change the trend’s direction.

This is# an arguable head and shoulders top. I do NOT short cryptos

— Peter Brandt (@PeterLBrandt) June 11, 2024

If Ethereum’s price continues to rise, it has a good chance of surpassing the $4,000 mark within the next few weeks and potentially reaching a height of approximately $4,404. This level aligns with the 0.618 Fibonacci Extension.

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2024-06-12 18:36