Large Ethereum (ETH) investors, commonly referred to as whales, have collectively acquired approximately $1.37 billion worth of ETH following a recent price decline. This significant buying activity occurred over a three-day period and signals a growing interest in Ethereum's price trajectory, despite its current struggles to recover.
Major Buyers Acquire Ethereum (ETH)
In the past few days, several prominent Ethereum (ETH) holders have executed substantial purchases while the broader market remains under pressure. Data provided by Lookonchain indicates that whales amassed a total of 394,682 ETH, valued at around $1,366,515,846, with an average purchase price of $3,462 per ETH.
The largest single transaction involved a whale adding 257,543 ETH, worth approximately $896 million, at an average price of $3,480. This particular whale had previously borrowed 66,000 ETH, valued at $265 million, from the Aave lending protocol two weeks prior.
Another notable buyer, BitMine Immersion Technologies, purchased 40,719 ETH for about $139.6 million, with each coin acquired at $3,430. A group of wallets identified as "7 Siblings" bought 37,971 ETH, valued at $133.4 million, at a price of $3,515 per coin. Additionally, a whale known for trading Ethereum through over-the-counter deals acquired 25,004 ETH, worth $82.6 million, at $3,304.
Other, smaller wallets, including those tagged as "fresh" and "unknown," also contributed to the buying spree, with individual purchases ranging between 4,009 ETH and 14,436 ETH. This indicates a diversified pattern of accumulation across various investor segments. These purchases suggest a strong conviction among major investors regarding Ethereum's long-term value, even as its short-term price performance has been weak.
Analysts Monitor Ethereum Price for Clear Direction
Traders and market analysts have been closely observing the recent whale activity and its potential implications. Market observer Ted Pillows commented that Ethereum's recent price movements appear to be driven primarily by the closing of short positions rather than the influx of new capital.
Pillows stated that for a genuine recovery to materialize, the Ethereum price would need to surpass the $3,600 to $3,700 range, supported by consistent inflows. He cautioned that until Ethereum reclaims this crucial zone, further price declines are possible. Other market participants share this sentiment of caution.
Another trader, RiyaRX, noted that rallies in Ethereum's price caused by selling pressure tend to be short-lived. She believes that a true shift in direction will only occur with the return of sustained demand. Ted echoed this view, identifying $3,600 as a critical level to watch. Your MVP Guy, another market participant, added that short squeezes often exhibit initial strength but tend to dissipate once momentum wanes.
Despite these reservations, some investors anticipate that the ongoing accumulation by whales could contribute to market stabilization in the coming weeks. Such large-scale buying activity is frequently interpreted as a sign of investor confidence, even during periods of broader market uncertainty.
Year-End Price Predictions for Ethereum
Despite the short-term volatility, some prominent market figures remain optimistic about Ethereum's future price performance. In a discussion shared by Cole Grinde, market strategist Tom Lee predicted that Ethereum (ETH) could reach $7,000 by the end of the year.
Lee's forecast is based on what he described as strong underlying fundamentals. He highlighted the increase in stablecoin transactions and record-high activity on Ethereum-based applications as indicators of a robust ecosystem. According to Lee, these fundamental strengths are currently driving the price action in the cryptocurrency market. He also offered broader market projections, suggesting Bitcoin could reach $200,000 and the S&P 500 could climb to 7,500.
Lee's optimistic outlook was met with skepticism from others, such as ComputeInvestor, who expressed doubts about the feasibility of achieving such ambitious price targets. Nevertheless, the persistent buying activity from whales suggests that a segment of investors anticipates a price increase for Ethereum later in the year.
While short-term traders maintain a cautious stance, large-scale holders appear to be adopting a longer-term perspective, steadily increasing their ETH holdings as prices remain under pressure. As of the latest reporting, Ethereum was trading at $3,397.53, marking a 3.66% increase.