Ethereum's Recent Surge and Whale Impact

Ethereum (ETH) is on a significant upward trajectory aiming for the $4,000 mark, driven by recent interactions with the Securities and Exchange Commission (SEC).

There are strong indications that Ethereum could replicate the price behavior of Bitcoin (BTC) with the notable surge seen after the approval of Bitcoin exchange-traded funds (ETFs).

The introduction of new Ether ETFs has spurred considerable activity among whales, further propelling Ethereum's climb.

On June 3, an analytics platform SpotOnChain shared about a whale transferring 7,000 ETH, valued at roughly $26.7 million, to Binance when Ethereum was trading at $3,814.

This particular whale, known for withdrawing ETH during downtrends and reinvesting during upswings, currently holds 36,785 ETH valued at about $141 million. The trading maneuvers have yielded an estimated $76.6 million profit, showcasing a growth rate of 57.9%.

Decrease in Ethereum Exchange Reserves

Since the approval of spot Ether ETFs in the United States on May 23, over $3 billion worth of Ether has been moved from centralized crypto exchanges, hinting at a potential scarcity.

According to CryptoQuant data, Ether reserves on exchanges witnessed a drop of around 797,000 between May 23 and June 2, totaling $3.02 billion. This decline indicates that fewer coins are now available for immediate sale as investors opt for self-custody for longer-term commitments.

Rise in Large ETH Holdings

The behavior of Ethereum's major whales is adding to the optimistic outlook. Data from IntoTheBlock indicates a notable increase in large ETH holdings, with wallets owning over 1% of the total ETH supply rising from 36% to 41% this year.

Information gathered from Santiment on June 4 highlights similar patterns. Entities holding between 10 million and 100 million ETH have been accumulating significantly since May 20, aligning with speculations of the SEC revisiting its position on spot Ether ETFs.

This accumulation trend has continued post the official approval of these ETFs on May 23.

On the contrary, whales holding between 1 million and 10 million ETH appear to be booking profits while exchange reserves witness a marked decline. This shift indicates that investors are transferring their holdings off exchanges, pointing towards a lasting positive sentiment that might push Ether above the $4,000 mark.

Ethereum Price Analysis amidst Substantial Whale Accumulation

At the latest data, Ethereum was trading at $3,751. On the monthly chart, ETH has surged by over 20%.

The recent surge in Ethereum's price, influenced by whale behaviors and the green light for spot Ether ETFs, reflects strong bullish sentiment in the market.

The significant outflow of Ether from exchanges and accumulation by major holders suggest a promising future price trend.

The approval of ETFs is poised to lure institutional investors, motivating ETH bulls to maintain the price above $3,500.

Disclaimer: The provided content should not be considered as investment advice. Investment decisions carry risks.

Source: The Bit Times