Curiousity and eagerness have been infused into the market by ETH whales’ recent frenzy of activity. One such whale has made a noteworthy move with their holdings, selling 12,048 ETH worth about $23.4 million to pay off debt, according to on-chain analytics from Lookonchain. At first, they bought the ETH from Binance when it was priced for about $1,768.
This whale and others have borrowed stablecoins using ETH as collateral on DeFi lending services like Aave and Compound, with the goal of buying even more ETH. This might be interpreted as a calculated vote of confidence in ETH’s future price growth. Furthermore, the fact that two new wallets withdrew a substantial amount of 21,076 ETH, or $41.23 million, from Bitfinex suggests that whales are increasingly transferring their money to cold storage to be held for an extended period of time. This kind of behaviour usually causes exchange liquidity to decline, which may raise market prices.
In a major deal, the previously mentioned whale pledged 7,324 ETH, or $14.3 million, as security on Compound in exchange for a $9 million USDT loan that was eventually sent to Binance. The purpose of this series of transactions is probably to buy more ETH and increase the whale’s holdings in the cryptocurrency. These significant actors are putting themselves in a position to profit from expected price rises and may even be driving up the value of ETH, which indicates a positive outlook.
The calculated actions taken by ETH whales reflect a persistently optimistic outlook and a long-term investment horizon. These investors are taking advantage of opportunities to increase their cryptocurrency holdings as long as ETH is supported over the $1,970 threshold. The market is still on guard, though, as these whales’ heavy selling can cause a market retreat if they decide to turn a profit.