- The supply held by non-exchange whale addresses increased significantly in February.
- The accumulation frenzy could be because of the rapidly rising MVRV Ratio.
Ethereum [ETH] broke past $2,900 in the last few hours of trading as positive momentum for the second-largest cryptocurrency persisted over the weekend.
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 CoinMarketCap.
According to AMBCrypto’s analysis of CryptoQuant data, the Taker Buy Sell Ratio bounced above 1, indicating that buying pressure for ETH was stronger than selling pressure at press time.
Source: CryptoQuant
The next target for the ETH bulls was the psychologically important $3,000 level. Shivam Thakral, CEO of Indian cryptocurrency exchange BuyUcoin, told AMBCrypto,
“An important level for Ethereum to breach is $3,000, after which we can see a potential rally in the prices of altcoins.”
Whales are making the right moves!
Amidst the surge, the behavior of a particular whale investor caught the attention of the market.
The wealthy holder grabbed a whopping 21,353 ETH worth $60 million just before prices rose, data from Lookonchain revealed. They did so by swapping Tether [USDT] tokens for ETH on Binance [BNB].
After some time, the whale withdrew 10,649 ETH, amounting to a little over $30 million, in a separate transaction.
In fact, the whale has been on an accumulation spree since the 8th of February, having amassed around 52,759 ETH coins as of this writing. The ensuing rally helped the investor make $100 million in profits.
This was not an isolated case. Ethereum whales in general have shown urgency in accumulating coins at every given opportunity, evidenced by a jump in transactions worth more than $1 million.
Moreover, the supply held by top non-exchange addresses has increased by 2 million since the start of February.
Source: Santiment
The lure of higher returns
A big reason behind the accumulation frenzy could be because of the rapidly rising 30-day MVRV Ratio.
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As per AMBCrypto’s analysis of Santiment data, ETH’s prevailing price was 16.43% higher than the average acquisition price.
Considering that ETH was still a good distance away from its all-time high (ATH) of $4,878, the buying spree might continue.
Source: Santiment