Whale nets $26.7 million in ETH following $76.6 million earnings during market surge
Ethereum (ETH) is making impressive progress towards reaching the $4,000 milestone, driven by recent developments involving the Securities and Exchange Commission (SEC). There is speculation that Ethereum may follow in Bitcoin’s (BTC) footsteps, which saw a significant rally after the approval of Bitcoin exchange-traded funds (ETFs). The introduction of new Ether ETFs has sparked significant whale activity, further propelling Ethereum’s rise.
On June 3, the analytics platform SpotOnChain shared a post on X (formerly Twitter), indicating that a whale transferred 7,000 ETH, worth approximately $26.7 million, to Binance when Ethereum was trading at $3,814. This particular whale, 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Since the approval of spot Ether ETFs in the United States on May 23, over $3 billion worth of Ether has been withdrawn from centralized crypto exchanges, signaling a potential supply shortage. According to CryptoQuant data, Ether reserves on exchanges decreased by approximately 797,000 between May 23 and June 2, equivalent to $3.02 billion. This reduction in exchange reserves suggests that fewer coins are available for sale as investors move their holdings to self-custody for long-term purposes rather than immediate selling.
The activity of Ethereum’s largest whales is intensifying the bullish sentiment. Data from IntoTheBlock reveals a significant increase in large ETH holdings, with wallets possessing over 1% of the total ETH supply rising from 36% to 41% this year. Similarly, data retrieved from Santiment on June 4 shows 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.
Conversely, whales holding between 1 million and 10 million ETH seem to be taking profits, while exchange reserves have decreased significantly. This suggests that investors are moving their holdings off exchanges, indicating a long-term bullish sentiment (hodling) that could potentially drive Ether above the $4,000 mark.
By press time, Ethereum was trading at $3,751, with a monthly rally of over 20%. The recent surge in Ethereum’s price, fueled by whale activity and the approval of spot Ether ETFs, demonstrates strong bullish sentiment in the market. The significant withdrawal of Ether from exchanges and accumulation by major holders indicate a promising future price trajectory. The ETF approval is expected to attract institutional investors, motivating ETH bulls to maintain the price above $3,500.
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