In a recent article on X, market intelligence platform IntoTheBlock has highlighted the increased activity of Ethereum (ETH) whales.
The focus of attention is on the metric known as "Number of Large Transactions," which tracks Ethereum transactions valued at over $100,000 on the network. Typically, only whale entities execute such sizable transactions, making these transfers indicative of significant investor activity.
The surge in ETH whale activity coincides with speculation surrounding the potential approval of ETH spot exchange-traded funds (ETFs). This market excitement has propelled ETH's price back to around the $3,800 mark.
Given these market developments, it's logical for large entities to reposition themselves. As the magnitude of their transactions is considerable, a significant number of simultaneous transactions from whales can potentially create waves in the market. Therefore, Ethereum could experience increased volatility if whale activity remains high.
However, the direction of this volatility hinges on whether these investors are collectively buying or selling. IntoTheBlock data also sheds light on this aspect through the "Large Holders Netflow" chart.
This indicator assesses the net movement of Ethereum into or out of the wallets of "Large Holders," defined by IntoTheBlock as those owning at least 0.1% of the total circulating supply of the asset.
May 2024, Cryptoniteuae