Large Ethereum wallets, containing more than 0.1% of the total supply, continue increasing their holdings. Data gathered by IntoTheBlock shows that during the last 30 days, these large addresses have accumulated more than 1.7M ETH. More importantly, there were only three days out of this period when outflow was experienced, reinforcing a significant pattern of buying pressure.
What the Data Reveals
The accompanying chart holds the ETH Holder Net Flow metric, which provides the net increase or decrease in the coin holdings. The chart predicts that whale wallets will gain more assets if there is a positive net flow. On the other hand, the negative net flows would depict selling or distribution.
Looking at the chart, there is constant positive flow throughout the month with big spikes that indicate that whales are buying coins at specific intervals; 175,000 ETH was purchased within the last two days alone.
Price Action and Market Confidence
Though Ethereum’s price is volatile in this period, varying from $2,573 to $2,773, massive purchases by large holders show a more extended confidence in Ethereum. Such an accumulation pattern is associated with market optimism. Such huge transactions might also be expected by further advancements or positive macro events within the Ethereum ecosystem, including new upgrades or increased institutional participation.
Why It Matters
Whales’ buying behavior can help support the price, reduce the potential for wild swings, and encourage other people to buy as well.
Since there have been some 1.7M ETH inflows recently, the whales’ behavior indicates that Ethereum has bright prospects regardless of the current state of the market. As for whether this accumulation will lead to a further increase in price, it is yet to be seen. However, this has helped strengthen ETH’s position as it enters Q4 2024.
While whales accumulate ETH and hold them for the long term, retail investors may interpret such action as a bullish signal, hoping that ETH will surge in the future. In this environment, all focus shifts to how ETH will perform in the last three months of 2024.
