Ethereum Whales Accumulate as Transactions Soar
March Sees Surge in Whale Transactions Stable
Whale transactions worth over $100,000 rose significantly in March, defying Ethereum’s underperformance in the same period.
The second-largest cryptocurrency witnessed just a marginal increase of 0.79% over the 30-day period, facing strong resistance at the $4,000 mark. However, this didn’t deter large investors, as Ethereum continued to be added to their portfolios.
Whales Continue to Trust Ethereum
According to an analysis of Santiment’s data by AMBCrypto, whale transactions worth over $100,000 rose significantly throughout March. This resulted in a sharp increase in smaller whale wallets holding between 1,000 and 10,000 coins.
This nature of accumulation, commonly known as “buy the dip” strategy, involves buying assets during temporary price drops to benefit from potential future price increases. Large investors adopt this strategy for fundamentally-strong assets with long-term growth potential.
The bullish sentiment has also affected derivatives markets, with approximately 72% of total whale positions on Binance betting on ETH to rise, according to data from Hyblock Capital.
The increasing bullish strategy among whales seems to have influenced the broader market sentiment towards Ethereum. The Fear and Greed Index reflects an overall mood of “Greed,” which generally leads to the Fear of Missing Out (FOMO) and attracts more investors to the market, adding to the buying pressure.
Potential Approval of Ether Spot ETFs Heighten optimism
Recently, pessimism had set in surrounding the approval of Ether spot Exchange-Traded Funds (ETFs). The possibility of Ether being deemed a security by the U.S. Securities and Exchange Commission (SEC) had lowered the odds of approval.
However, the U.S. derivatives market regulator, Commodities Futures Trading Commission (CFTC) referred to ETH as a commodity in a recent lawsuit. This development has rekindled hope among investors that approving Ether spot ETFs might eventually become a reality. If and when approved, spot ETFs have the potential to bring about positive trends for ETH, similar to those witnessed by Bitcoin since mid-January.
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