Ethereum is experiencing notable attention from large holders as its price surges past the $2,800 mark, reaching a three-month high. The leading altcoin has gained 8% in the past 24 hours, trading around $2,800, with its market capitalization surpassing $336 billion. Additionally, daily trading volume has spiked by 27%, now reaching $38 billion.
Earlier today, ETH touched a local peak of $2,870 before undergoing a brief correction as short-term profit-taking kicked in. Despite the pullback, Ethereum’s upward movement has been accompanied by a significant increase in whale activity, signaling heightened interest from large investors.
Whale Transactions Reach 3-Month High
On Wednesday, November 6, Ethereum saw a massive surge in large transactions, with the number of transactions worth at least $100,000 increasing by 60%. According to data from IntoTheBlock (ITB), this spike in whale activity brought the total number of unique large transactions to 7,270, marking a three-month high. In total, more than $8.7 billion worth of ETH was moved in a single day.
However, while the price surge and whale transactions are impressive, data also shows a decline in net whale accumulation over the past week. On October 31, large holders added a net inflow of 91,300 ETH, but by November 6, that figure had dropped significantly to just 5,930 ETH. This slowdown in whale accumulation could suggest some caution among large Ethereum holders, as market movements appear to be heavily influenced by external factors, such as news surrounding the upcoming U.S. presidential election.
Whale Behavior Could Signal Uncertainty
It’s important to note that whales control a significant portion of Ethereum’s total supply. Currently, 53% of the total ETH supply is held in whale addresses. This concentration of holdings means that any shift in whale activity, such as large deposits into exchanges, could trigger a wave of uncertainty among retail investors, potentially leading to fear, uncertainty, and doubt (FUD) in the market.
Moreover, Ethereum’s exchange net inflow fell to just 4,170 ETH on November 6, down sharply from 71,720 ETH the day before. This decline in exchange inflows could signal reduced appetite for selling or moving ETH into centralized exchanges.
Profit-Taking and Long-Term Holders
Despite the market’s volatility, a large portion of Ethereum holders remains in profit. According to ITB data, 71% of ETH holders are currently seeing gains, and the majority of Ethereum addresses (over 74%) have been holding their ETH for over a year. This suggests that while short-term profit-taking may be occurring, many investors are still holding their positions, potentially indicating confidence in Ethereum’s long-term prospects.
Overall, Ethereum’s recent price surge, coupled with increased whale activity, reflects strong investor sentiment. However, the slowdown in whale accumulation and the current market uncertainty tied to external factors like U.S. politics could influence the next phase of Ethereum’s price movement.
