Ethereum has seen a 4% bullish surge over the past few days as whales have shown increased levels of activity.
Ethereum whale transactions at highest levels since December 16th
According to data from on-chain analytics firm Santiment, whales made 611 transactions over the past day. The relevant indicator here is the Whale Transaction Count, which measures the total number of Ethereum remittances that take place on-chain and are worth more than $100,000.
When the value of this metric is high, it means that whales are currently conducting a large number of transactions. Because whale transactions involve the movement of a significant number of coins, many of them happening close together can have visible impacts on the price of the crypto. Therefore periods of high values of the metric can be quite volatile.
On the other hand, low readings suggest that whales are not that active at the moment, which may result in the price not showing any significant movement. Well, here is a chart showing the trend in the Ethereum number of whale transactions over the last month:
The value of the metric seems to have been relatively high for the past few days | Source: Santiment
As the chart above shows, the Ethereum whale transaction count has seen an increase over the past day. During this period of heightened activity, whales have completed 611 transactions so far, marking the highest level since Dec. 16, when the crypto’s price saw a sharp downward move, forming a local bottom of around $1,160.
This rise at the bottom from Dec. 16 was larger than the current one and was a sign that a large number of whales were buying up the crypto at these low prices. The recent surge, on the other hand, has occurred while ETH price has been rising as per the chart.
One possibility is that this could indicate that whales are optimistic about this recent increase and are therefore buying more while they still can. Such support from these gargantuan holders could further support the rally and propel Ethereum to higher levels.
Another likely scenario, however, is that these quick trades could instead be for selling purposes, which if true would be more of a hindrance to this recent price push, as was the case with the rally above $1,300 in the first half of December.
At the time of writing, Ethereum’s price is around $1,250, up 4% over the past week.
It looks like the value of the crypto has increased a bit over the past few days | Source: ETHUSD on TradingView Selected image from DrawKit illustrations on Unsplash.com, charts from TradingView.com, Santiment.net
Source: Crypto News Deutsch