Key Insights
Whales in the crypto market are showing signs of bullish behavior, such as opening large long positions and moving assets to private wallets. The number of depositing addresses has decreased to 16,000, adding to the upward pressure on Ethereum.
As Ethereum approaches the $4,000 mark, investors are preparing for a potential rally by placing buy orders on the asset. Whale activity further supports this upward trend, with ETH deposits on exchanges and overall exchange reserves continuing to decline.
Whale Interest Resurges in Ethereum
Over the past 24 hours, there has been a notable increase in whale activity. Whales, which control significant liquidity, often influence market movements through their large trades.
One whale, Aguila Trade, recently closed a short position on ETH with losses exceeding $8 million, and subsequently opened a long position. The new long position is valued at over $128 million, with an unrealized profit of $631,000 at the moment.
Additionally, LookonChain reported that another whale withdrew 13,244 ETH (equivalent to $49.52 million) from OKX exchange and transferred the funds to private wallets. Such transfers often indicate a positive long-term outlook as investors opt to hold rather than sell in the short term.
On-chain Activity and Exchange Reserves Support Bullish Sentiment
Significant inflows have been observed in both the spot market and on-chain transactions. According to CoinGlass’ Spot Exchange Netflow data, investors have accumulated over $70 million worth of ETH and moved it to private wallets, reflecting a broader bullish sentiment in the long run.
Artemis also notes a significant inflow of liquidity from other blockchains into Ethereum. The Bridge Netflow from external ecosystems has reached $4 million, indicating a shift of capital into ETH as investors anticipate a strong rally.
Exchange activities suggest further potential for growth, while signs of an upcoming supply squeeze continue to emerge.
Decrease in Exchange Reserves and Slow Deposits
The amount of ETH held on exchanges has notably decreased, with exchange reserves showing a downward trend after previous increases. Currently, ETH availability on exchanges stands at 19.7 million, signaling a trend of investors withdrawing their assets from exchanges to reduce the likelihood of immediate sell-offs.
The number of depositing addresses has also decreased significantly, reaching a level last seen on July 7th. With only 16,000 addresses currently depositing ETH, the data suggests reduced selling activity, especially following ETH’s 54% rally in the past four weeks.
If this trend continues, the diminishing availability of ETH could lead to a supply squeeze, where demand surpasses the limited supply, potentially driving further price hikes.
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