Regulation
New whale moves 36,000 ETH from Coinbase, attracting market attention
A new whale address made a large transaction in which it sent 36,000 Ether from Coinbase.
The transaction, observed and disclosed by 0xScopescan, is worth approximately USD 127 million. The owner of the whale’s address has not been revealed. This movement is important because it marks a fairly significant change in the cryptocurrency market. Information regarding the transaction or the whale’s new address has not been disclosed, so the effect on the Ethereum market is still unknown.
Institutional Investors Accumulate Ethereum Following ETF Approvals
Over the past few months, institutional investors have rapidly strengthened their positions in Ethereum in the cryptocurrency market. This trend comes against the backdrop of actions taken by the United States Securities and Exchange Commission (SEC). Approval of Spot Ethereum exchange-traded funds (AND F). Citing trading patterns, crypto analyst Ali Martinez says this accumulation is very bullish and can propel Ethereum’s price to eclipse $4,000.
According to an article by Martinez, the number of Ethereum addresses holding 10,000 ETH or more has increased by 3% over the last twenty-one days. This increase reflects renewed interest from major investors. Speculation regarding the approval of ETFs and the subsequent rise in the institutional buying side played a crucial role in the Ethereum price surge earlier this year.
Whales and market activity
Whale spending has been very active in the cryptocurrency market, especially on the acquisition of Ethereum. This is due to Approval of Spot Ethereum ETFs as one of the main factors. The first price surge occurred in February, due to rumors of the SEC approving these ETFs, Ethereum surged over 83%, surpassing the $4,000 mark for the first time since 2021.
Further court rulings in May strengthened the price of ETH, which crossed the $3,000 mark. So, institutional investors have been accumulating more Ethereum as the SEC has approved these ETFs. Data from Glassnode shows that over the past three weeks, addresses holding 10,000 ETH or more have increased to around 1,000 addresses. There is also an increase in mega-whale addresses, with 15 new addresses in the last 30 days.
Looking at on-chain metrics, we observe that the amount of Ethereum held on centralized exchanges has decreased significantly. So, due to the mass withdrawal, Ethereum is becoming scarce on these platforms. However, the ETH balance on centralized exchanges has now fallen to a level lower than the BTC balance, although BTC is actively accumulated in Spot Bitcoin ETF wallets.
According to Glassnode data, only 10.56% of Ethereum’s total supply is still stored on the most popular exchanges. These supply reductions on exchanges are one of the key factors explaining recent market conditions and increased buying pressure. The consolidation of social sentiment for Ethereum following the approval of the Spot ETF means that investor interest is still high, supporting the accumulation process.
Waiting for ETH price due to active buying pressure
Ethereum price continues to remain bullish as more whales and institutions invest money in the coin. At press time, the Ethereum price stood at $3,491, although it fell 5.35% over the past day. Purchasing pressure continues to grow, which can be seen as a positive, although there are still some hurdles to overcome.
ETH/USD 1-day price chart (Source: CoinMarketCap)
The first major resistance wall is set at around $3,700, which corresponds to the level of around 1.82 million addresses holding 1.8 million ETH in total. This could be a breakthrough to the next level of price increases, as people may have become resistant to previous price changes. But short-term fluctuations cannot be ruled out since market dynamics are still changing.