Follow The Actions Of This Ethereum Whale Just Before Prices Rose
The supply of non-exchange whale addresses increased significantly in February.
The accumulation frenzy could be due to the rapidly increasing MVRV ratio.
Ethereum [ETH] broke $2,900 in recent hours of trading as positive momentum for the second-largest cryptocurrency continued over the weekend.
According to CoinMarketCap, the digital asset was trading at $2,907 at press time, up 3.65% in the last 24 hours and over 16% in the last week.
According to AskFX’s analysis of CryptoQuant data, the taker buy sell ratio rose above 1, indicating that buying pressure for ETH was stronger than selling pressure at press time.
The next target for ETH bulls was the psychologically important $3,000 mark. Shivam Thakral, CEO of Indian cryptocurrency exchange BuyUcoin, told AskFX:
“An important level that Ethereum needs to break is $3,000, after which we can see a possible increase in altcoin prices.”
Amid the surge, the behavior of a particular whale investor caught the market’s attention.
The wealthy holder snapped up a whopping 21,353 ETH worth $60 million just before prices surged, data from Lookonchain showed. They did this by swapping Tether tokens [USDT] for ETH on Binance [BNB].
After some time, the whale withdrew 10,649 ETH in a separate transaction, which is just over $30 million.
In fact, the whale has been on a collecting boom since February 8th and has accumulated around 52,759 ETH coins as of this writing. The subsequent rally helped the investor make a profit of $100 million.
This was not an isolated case. Ethereum whales in general have shown an urgency to accumulate coins at every opportunity, evidenced by an increase in transactions worth more than $1 million.
In addition, the supply of top addresses outside the exchange has increased by 2 million since the beginning of February.
A big reason for the accumulation frenzy could be the rapidly rising 30-day MVRV ratio.
According to AskFX’s analysis of Santiment data, the prevailing price of ETH was 16.43% higher than the average purchase price.
Considering that ETH is still far from its all-time high (ATH) of $4,878, the buying spree could continue.
