Ethereum whales have been on a buying spree following the recent price drop on October 23, accumulating large amounts of ETH as they capitalize on the dip. According to data from IntoTheBlock, major Ethereum addresses acquired over 598,000 ETH within the last week, totaling an impressive $1.6 billion at current prices. This surge in accumulation comes on the heels of a sharp decline in ETH price from its peak of $2,765 on October 21.
Exchange Outflows Spike as Whales Lead the Charge
In addition to increased holdings, whale activity has led to a notable rise in exchange outflows. October 29 alone saw a net outflow of $277 million in ETH, with total weekly outflows reaching $315 million. The large holder-to-exchange net flow ratio has climbed to 10%, signaling heightened whale activity relative to retail investors as ETH hovers around the $2,600 level.
Will Whale Accumulation Drive FOMO and Boost Ethereum’s Price?
With $38 billion in large Ethereum transactions over the past week, whale accumulation could potentially trigger FOMO (fear of missing out) among smaller investors, possibly boosting ETH prices. However, despite these optimistic signs, Ethereum currently lacks a strong bullish catalyst. Additionally, the introduction of spot ETH exchange-traded funds in the U.S. has been underwhelming, with net outflows totaling $485.4 million since July.
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
