Whales Stockpile Ethereum as Prices Surge Past $3,330

Continued Investment in Ethereum

As Ethereum’s price broke the $3,330 mark, whales have continued to invest heavily in the asset. The rise in interest is further evidenced by the growing popularity of Ethereum exchange-traded funds (ETFs) among institutional investors.

Key Insights from On-Chain Data

Crypto analyst Ali Martinez recently highlighted data from Glassnode, indicating a significant surge in Ethereum’s on-chain whale activity. The following points summarize the key findings:

• The number of active Ethereum addresses with balances exceeding $10,000 has increased since the start of December.
• The count of mega-whale addresses peaked around December 9th, showing a notable upward trend.
• Active addresses began rising sharply from mid-November onward.

Recent Whale Purchases

Last week, blockchain analytics firm Lookonchain reported a significant transaction where a whale purchased 1,800 ETH for $7 million when the asset was trading at approximately $3,900. This whale had accumulated a total of 39,600 ETH since May 24th of this year, with an average purchase price of $2,487. At the time of publication, Lookonchain noted that this whale had unrealized profits amounting to $54 million.

Additionally, on November 13th, Lookonchain reported that another whale acquired 7,389.5 ETH valued at $23.44 million. This particular whale had accumulated a total of 18,049 ETH worth $59.3 million within just three days.

Market Predictions and Ethereum Supply Shock

Crypto trader Ash Crypto has suggested that an Ethereum supply shock may be imminent, projecting that ETH could reach $10,000 soon. This prediction is backed by several factors:

• Billions of ETH are currently staked.
• There is a rising demand for Ethereum among spot exchange-traded funds.
• Potential regulatory improvements for decentralized finance under a new political landscape could bolster Ethereum’s growth.

Staking and Institutional Demand

Data from Dune Analytics indicates that the total amount of ETH staked has surpassed 34 million, accounting for over 28% of the total ETH supply. The following protocols dominate the staking landscape:

• Lido: 28.48% of all staked ETH
• Coinbase: 10%
• Binance: 5%

Moreover, U.S. spot Ethereum ETFs have demonstrated rising demand for the asset. According to the ETF tracking website SoSoValue, these ETFs have recorded positive inflows since November 22nd, with the highest inflow of $428.44 million occurring on November 5th. Notably, the ETFs experienced inflows of:

• $23.61 million on December 13th
• $273.87 million on December 12th

At the time of this publication, Ethereum ETFs hold approximately $13.78 billion in assets under management, which represents about 2.92% of Ethereum’s total supply.

Current Market Status of Ethereum

As of now, Ethereum is trading at approximately $3,959, with a total market capitalization of $476.8 billion. The asset has experienced a 2% increase over the last seven days and has remained relatively stable in the past 24 hours.

Conclusion

The surge in whale activity and institutional interest in Ethereum signals a robust outlook for the cryptocurrency. As more investors accumulate large amounts of ETH and the market dynamics shift, the potential for significant price movements remains high. With a supply shock on the horizon and increasing demand from various sectors, Ethereum could be poised for further growth in the coming months.