Ethereum (ETH) is making significant strides towards reaching the $4,000 mark, spurred by recent developments involving the Securities and Exchange Commission (SEC).
Speculation is rife that Ethereum might replicate Bitcoin’s (BTC) price movement, which saw a notable rally following the approval of Bitcoin exchange-traded funds (ETFs).
The introduction of new Ether ETFs has been a catalyst for significant whale activity, further boosting Ethereum’s ascent
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On June 3, the analytics platform SpotOnChain shared a post on X (formerly Twitter) indicating that a whale transferred 7,000 ETH, worth approximately $26.7 million, to Binance when Ethereum was trading at $3,814.
This whale, known for withdrawing ETH during bear markets and reinvesting during price surges, currently holds 36,785 ETH valued at around $141 million. The trading activities have generated an estimated $76.6 million profit, reflecting a growth rate of 57.9%.
Ethereum exchange reserves decline
Since the approval of spot Ether ETFs in the United States on May 23, over $3 billion worth of Ether has been withdrawn from centralized crypto exchanges, signaling a potential supply squeeze.
According to CryptoQuant data, Ether reserves on exchanges dropped by approximately 797,000 between May 23 and June 2, equating to $3.02 billion.
This reduction in exchange reserves suggests that fewer coins are available for sale as investors move their holdings to self-custody for long-term purposes rather than immediate selling.
Increase in large ETH holdings
The activity of Ethereum’s largest whales is intensifying the bullish sentiment. Data from IntoTheBlock reveals a significant increase in large ETH holdings, with wallets possessing over 1% of the total ETH supply, rising from 36% to 41% this year.
Finbold retrieved data from Santiment on June 4, showing similar trends. Notably, there has been substantial accumulation among entities holding between 10 million and 100 million ETH since May 20, coinciding with rumors of the SEC reconsidering its stance on spot Ether ETFs.
This accumulation has persisted following the official approval of such ETFs on May 23.
Conversely, whales holding between 1 million and 10 million ETH appear to be taking profits, while exchange reserves have significantly declined.
This suggests that investors are moving their holdings off exchanges, indicating a long-term bullish sentiment (hodling) that could potentially drive Ether above the $4,000 mark.
Ethereum price analysis amid massive whale accumulation
By press time, Ethereum was trading at $3,751. On the monthly chart, ETH has rallied by over 20%.
The recent surge in Ethereum’s price, spurred by whale activity and the approval of spot Ether ETFs, shows strong bullish sentiment in the market.
The significant withdrawal of Ether from exchanges and accumulation by major holders suggest a promising future price trajectory.
The ETF approval is expected to attract institutional investors, motivating ETH bulls to maintain the price above $3,500
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