ETH whales buy the dip after taking profits

Ethereum whales are starting to show renewed confidence after weeks of profit-taking, shows on-chain data. The fresh accumulation signals a potential shift in investors’ sentiment as Ether prices managed to surge marginally over the last 7 days after a heavy dump.

The global digital assets market saw mixed indexes as Bitcoin hovered above $111K, cluelessly. The cumulative crypto market cap surged marginally to stand at $3.76 trillion. The biggest altcoin, Ether, tried to regain the $4,000 mark in order to score a breakthrough.

Smart money reloads on Ethereum

According to the data shared by Santiment, addresses holding between 100 and 10,000 ETH have begun accumulating again. This comes after these whales and sharks unloaded roughly 1.36 million ETH between October 5 and 16. Since then, they’ve bought back nearly one-sixth of those coins. It is seen as a modest but encouraging sign for Ethereum.

Wallet data adds weight to the trend. A whale wallet “0x395” withdrew 12,000 ETH (approx. worth $46.3 million) from Binance on Oct 23 at an average price of $3,854 per coin. The whale now holds 67,981 ETH (approx. worth $264 million). Historical data shows that this same wallet added ETH at an average of $3,027 between June and mid-August. However, it then sold into strength between mid-September and early October at an average of $4,218.

Another whale wallet “0x86E” bought 8,491 ETH (approx. worth $32.5 million) from OKX on October 23. This move contributed to the uptick in whale accumulation activity. Elsewhere on the network, blockchain sleuths tracked the RadiantCapital exploiter swapping 9.7 million DAI for 2,550 WETH. The swap was done at an average price of $3,803. The funds were funneled through Tornado Cash, which suggests an ongoing laundering effort.

Ethereum price has dipped by more than 11% over the past 60 days, briefly testing support near $3,738. It is still running up by 18% on the year-to-date (YTD) basis. ETH is trading at an average price of $3,930 at the press time. Its 24 hour trading volume stood around $29 billion.

ETH ETFs see outflows

Beyond whale moves, stablecoin activity on Ethereum has exploded. Token Terminal data shows a 400% jump in stablecoin transfer volume over the past 30 days. It is totaling $581 billion across more than 12.5 million transactions. The total stablecoin market cap on Ethereum now stands at $163 billion. It emerges as a sign of the network’s continued dominance in digital dollar settlements.

Investor preference still remains in a split between Bitcoin and Ethereum in the ETF arena. On October 24, Ethereum spot ETFs recorded $93.6 million in net outflows while Bitcoin ETFs pulled in $90.6 million. This was the third straight day of redemptions for ETH ETFs.

On October 23, Bitcoin funds ended the day with $20.3 million in net inflows. It was majorly driven by $107.8 million to BlackRock’s iShares Bitcoin Trust (IBIT). It was then followed by smaller gains across Bitwise, Fidelity, and Grayscale’s mini trust. Outflows from GBTC of $60.5 million and Ark 21Shares’ ARKB’s $55 million nearly offset those gains but failed to drag the total into the red. Bitcoin has managed to gain by more than 4% over the past 7 days. BTC is trading at an average price of $111,594 at the press time.