On-chain data suggests that Ethereum whales have been aggressively buying millions of dollars worth of ETH. Arkham Intelligence reported that a new Ethereum wallet purchased 20,000 ETH while another wallet purchased $206 million worth of AaveETH.
The recent crypto market meltdown has not been enough to discourage large players from doubling down on Ethereum. On-chain data shows that these market participants have purchased more than $350 million in Ethereum in recent times, as the ETH price plummeted.
On-chain data provider Arkham Intelligence reported that a new Ethereum wallet purchased 10,000 ETH, worth approximately $34 million, on Wednesday, when Ethereum reached a low of $ 3,200.
The same wallet added another 10,000 ETH yesterday, bringing its total net holdings to 20,000 ETH, worth approximately $70 million. Both transactions drew ETH from Kraken’s hot wallet, according to Arkham Intelligence.
On-chain data provider Etherscan flagged another wallet that acquired 24,007 ETH worth more than $82 million. According to the data provider, the transaction occurred via Galaxy Digital’s over-the-counter desk. Etherscan also indicates that another whale purchased $206 million worth of AaveETH on Wednesday.
CryptoQuant analyst says Ethereum could find support between $3k and $3.4k
According to CryptoQuant analyst ShayanMarkets, the significant whale activity increased as the crypto asset dropped towards $3,200. The analyst likened the activity to a standard pattern usually experienced before local bottoms and early accumulation phases. Shayan believes the notable pattern suggests institutional re-entry at discounted prices, as retail traders remain cautious about the situation.
“Across previous cycles, similar transitions, from whale accumulation to retail capitulation, have marked the start of trend reversals or late-stage compression phases before major upswings.”
–ShayanMarkets, CryptoQuant analyst
The analyst concluded that if the pattern continues and the Ethereum price finds support in the $3k to $3,400 region, the crypto asset may enter an accumulation phase that precedes a potential bullish run towards the $4,500 to $4,800 level.
Technical analyst and market researcher Ash Crypto wrote to his two million followers on X that the imminent ETH Fusaka upgrade scheduled for December 3rd could catalyze Ethereum’s next bullish run.
According to the analyst, Ethereum is on the verge of a “Performance era” with the upgrade promoting higher network speeds, lower transaction costs, increased throughput, and more users. He also noted the on-chain activity exhibited by whales.
ETH is currently trading at $3,552.62 at the time of this publication. According to data from the crypto price tracking website CoinMarketCap, the crypto asset has surged by 6.51% in the last seven days, although it has remained relatively unchanged in the last 24 hours, with a 0.14% dip.
Institutional interests in Ethereum re-ignite
Cryptopolitan recently reported that Ethereum spot activity surged by 57% in the past month. According to the report, Ethereum whales have increased their holdings by 7.6 million tokens since the early part of Q2. The data also suggests that larger players are interested in the crypto asset at the current discounted prices.
The FUSAKA upgrade could be the determining factor attracting the recent increased whale activity on Ethereum. At the end of October, Ethereum announced the launch date of the Fusaka upgrade, which will oversee the implementation of more than a dozen improvement proposals aimed at strengthening the security, stability, and scalability of the Ethereum network.
The upgrade will also increase the network’s block gas limit from 30 million to 150 million, effectively doubling the network’s blob capacity at a faster rate. The upgrade rollout will occur in three stages: the mainnet release, blob expansion for Layer 2 scaling, and a subsequent data limit increase via a hard fork.
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