Ethereum whales are busy in the market, as online data shows these investors have been accumulating a lot of the second-largest cryptocurrency Token by market Capital .
This comes amid a drop in ETH prices, with history suggesting the cryptocurrency could see further price declines in the short term.
Whales Accumulate More ETH
Data from market intelligence platform IntoTheBlock shows that Ethereum whales bought 297,670 ETH ($1 billion) on July 24.
The previous day, these whales also bought nearly 400,000 ETH. Other data shows that the inflow to these whale addresses has increased by more than 28% over the past seven days.
The drop in outflows from these addresses further highlights the bullish sentiment these investors have towards Ethereum despite its underperformance.
Outflows from these accounts have fallen more than 14% in the past seven days and more than 16% in the past 30 days.
IntoTheBlock's large holder net inflow figures also highlight this accumulation wave by Ethereum whales, as net inflows have increased by more than 313%.
This means that these investors are accumulating heavily instead of choosing to sell their ETH holdings.
on-chain analytics platform Santiment noted that the significant increase in ETH whale activity was due to the Spot Ethereum ETFs, which began trading on July 23.
The platform made this observation while revealing that since July 17, the number of ETH transfers has exceeded the value of $100,000, which is 64% higher than the number of BTC transfers and 126% higher than the number of USDT transfers on the Ethereum network.
Spot Ethereum ETFs have certainly given Ethereum a bullish outlook even before they launched, as crypto analysts like Rlinda predict that ETH could surge to $4,000 thanks to these funds.
Therefore, it is no surprise that Ethereum whales continue to accumulate crypto Token in anticipation of higher ETH prices.
Initial Spot Ethereum ETF Launch Could Be a Hurdle
Spot Ethereum ETFs are expected to be the catalyst that will spark a major ETH rally and that could happen at some point.
However, history suggests that these funds could initially Vai as a headwind for Ethereum, similar to the fate Bitcoin suffered shortly after the launch of Spot Bitcoin ETFs earlier this year.
Bitcoin has seen a significant price drop, largely due to outflows from Grayscale’s Bitcoin Trust (GBTC). A similar situation is happening to ETH with Grayscale’s Ethereum Trust (ETHE).
Interestingly, Grayscale's ETHE experienced a net inflow of $484.1 million on its first day of trading, which is much larger than the net inflow that GBTC experienced on its first day, and GBTC is even larger.
XEM this, Ethereum could face significant selling pressure from Grayscale’s ETHE. Data from Farside Investor shows that the Spot Ethereum ETF experienced net inflows of $326.9 million on July 24 (day 2), which could be just the beginning of a major outflow that could eventually flow out of the fund.
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