New Whale Moves 36,000 ETH from Coinbase Sparking Market Attention

A new whale address has made a large transaction in which it sent out 36,000 Ether from Coinbase. 

The transaction, which is observed and disclosed by 0xScopescan, is worth around 127 million USD. The said whale address holder has not been revealed. This movement is important because it marks a rather significant change within the scope of the cryptocurrency market. Information regarding the transaction or the new whale address was not disclosed, thus the effect on the Ethereum market is still unknown.

Institutional Investors Accumulate Ethereum Following ETF Approvals

In the last few months, institutional investors have been rapidly building up their Ethereum positions in the cryptocurrency market. This trend comes in the backdrop of the U.S. Securities and Exchange Commission’s (SEC) approval of Spot Ethereum Exchange-Traded Funds (ETFs). Citing trading patterns, crypto analyst Ali Martinez claims that this accumulation is very bullish and can propel Ethereum’s price to eclipse $4,000.

According to an X post by Martinez, the number of Ethereum addresses containing 10,000 or more ETH has gone up by 3% in the last twenty-one days. This increase shows a pick-up in interest from large investors. Speculation regarding the approval of ETFs and the subsequent rise in the institutional buy-side have been critical in propelling Ethereum prices in the earlier part of this year.

Whales and the Market Activity

Spending by whales has been quite active in the cryptocurrency market, particularly in the acquisition of Ethereum. This has been due to the approval of Spot Ethereum ETFs as one of the main factors. The first price spike happened in February, due to rumors of the SEC approving these ETFs,ethereum surged over 83% passing the $4,000 mark for the first time since 2021.

More court decisions in May strengthened the ETH price, which crossed the $3,000 mark. Thus, institutional investors have been accumulating more Ethereum as the SEC has approved these ETFs. Glassnode data shows that within the last three weeks, the address holding 10,000 ETH or more has risen to approximately 1,000 addresses. Also, there is an increase in the mega-whale addresses, with 15 new addresses in the last 30 days.

Looking at on-chain metrics, it is observed that the amount of Ethereum held on centralized exchanges has gone down dramatically. Thus, due to the massive withdrawal, Ethereum is becoming scarce on these platforms. However, the ETH balance on centralized exchanges has now fallen to a level below the BTC balance, although the BTC is being actively accumulated in the Spot Bitcoin ETF wallets.

According to Glassnode data, only 10.56% of the total Ethereum supply is still stored on the most popular exchanges. These reductions of supply on exchanges are one of the key factors to explain recent market conditions and the stronger buying pressure. The consolidation of social sentiment for Ethereum after the Spot ETF approval means that investors’ interest is still high, which supports the accumulation process.

ETH Price Expectation as of Active Buying Pressure

Ethereum price continues to remain bullish as more whales and institutions pour money into the coin. At press time, Ethereum price was standing at $3,491, though it has plummeted by 5.35% in the last one day. The buying pressure continues to climb, which can be considered as a positive feature, although there are still certain barriers that need to be broken through.

ETH/USD 1-day price chart (Source: CoinMarketCap)

The first major resistance wall is established at around $3,700, which marks the level of approximately 1.82 million addresses that hold 1.8 million ETH combined. This could be a breakthrough to the next level of prices increase as people may have become resistant to the previous price changes. But short term fluctuations cannot be ruled out since the market dynamics are still in the process of shifting.