Whale Rakes in $26.7 Million in ETH Following $76.6 Million Profit During Market Surge
Ethereum (ETH) is making impressive progress towards reaching the $4,000 milestone, driven by recent advancements involving the Securities and Exchange Commission (SEC). There is speculation that Ethereum may follow in the footsteps of Bitcoin (BTC) in terms of price movement, as Bitcoin experienced a significant rally after the approval of Bitcoin exchange-traded funds (ETFs). The introduction of new Ether ETFs has sparked significant activity among large investors, further propelling Ethereum’s ascent.
On June 3, the analytics platform SpotOnChain shared a post on X (formerly Twitter), revealing that a large investor transferred 7,000 ETH, worth approximately $26.7 million, to Binance when Ethereum was trading at $3,814. This investor, known for withdrawing ETH during bear markets and reinvesting during price surges, currently holds 36,785 ETH valued at around $141 million. Their trading activities have generated an estimated profit of $76.6 million, reflecting a growth rate of 57.9%.
Since the approval of spot Ether ETFs in the United States on May 23, over $3 billion worth of Ether has been withdrawn from centralized cryptocurrency exchanges, indicating a potential shortage in supply. According to CryptoQuant data, Ether reserves on exchanges dropped by approximately 797,000 between May 23 and June 2, equivalent to $3.02 billion. This decline in exchange reserves suggests that fewer coins are available for sale as investors move their holdings to self-custody for long-term purposes instead of immediate selling.
The bullish sentiment surrounding Ethereum is further intensified by the increased activity of large ETH holders. Data from IntoTheBlock reveals a significant rise in holdings of large ETH wallets, with wallets owning over 1% of the total ETH supply increasing from 36% to 41% this year. Similar trends are observed in data retrieved by Finbold from Santiment, showing substantial accumulation among entities holding between 10 million and 100 million ETH since May 20, coinciding with rumors of the SEC reconsidering its stance on spot Ether ETFs. This accumulation has continued following the official approval of such ETFs on May 23.
On the other hand, whales holding between 1 million and 10 million ETH seem to be taking profits, while exchange reserves have significantly decreased. This suggests that investors are moving their holdings off exchanges, indicating a long-term bullish sentiment that could potentially drive Ether above the $4,000 mark.
At the time of writing, Ethereum is trading at $3,751, with a monthly rally of over 20%. The recent surge in Ethereum’s price, driven by whale activity and the approval of spot Ether ETFs, indicates a strong bullish sentiment in the market. The substantial withdrawal of Ether from exchanges and the accumulation by major holders suggest a promising future price trajectory. The approval of ETFs is expected to attract institutional investors, encouraging ETH bulls to maintain the price above $3,500.
Disclaimer: The information provided in this article should not be considered investment advice. Investing in cryptocurrencies carries risks, and your capital is at risk.