Ethereum Sees an Increase in Whale Activity Following Optimistic Words from Tom Lee
As Ethereum price it also suggests, bullish sentiment among investors has developed. Major Ethereum investors are quietly increasing their exposure to the altcoin following the recent move above the $2,000 price level. Another development that serves as a boost to this renewed confidence is the recent comments from Tom Lee about the outlook for this asset.
Tom Lee Supports Ethereum, Major Players Stack ETH
While Ethereum is gradually gaining its upward momentum, a new accumulation wave appears under the latest upward trend. This new accumulation is occurring among large investors or whales, indicating renewed confidence in the outlook for the asset.
Santiment, a popular market intelligence and data analytics platform, revealed that wallet addresses holding between 100 and 100,000 ETH have been increasing over the past 2 days. In this short period of time, these investors received another 756,950 ETH.
With collections rising during price hikes, this suggests that ETH whales they are taking advantage of the current market situation to increase their exposure. Such action from major owners is often interpreted as a sign of strong belief in the long-term trajectory of the altcoin.
While large investors are buying more and more ETH, small holders, those considered shrimps, have been slowly withdrawing their stash. As of Mid-December, wallet addresses that held less than 0.01 ETH collectively lost more than 0.9% of their supply. This divergence highlights a change in market confidence, with deeper players leaning bullish while smaller investors grow more cautious.
Given the great influence investor actions in the market, a change in ownership of major players could lead to a tightening of supply, which could impact Ethereum’s price performance in the short term. If this continues, it is likely to cause a strong upward movement of the altcoin.
Bitmine Still Buys More ETH in the Face of Stiffness
According to Santiment’s data, the increase in whale accumulation follows recent comments made by Tom Leehis bullish attitude towards the altcoin contributed to the expansion of the bullish narrative. Tom Lee, Chief Executive Officer (CEO) of Bitmine Immersion, said that the Ethereum company’s premise is that the auction is in the final stage of the “mini crypto winter.” This statement only raised hopes as institutional voices and on-chain behavior began to converge.
Adding to the bullish statement is the firm’s most recent ETH purchase, which totaled 65,341 ETH in the past week. This figure marks a significant increase in buying activity compared to the average 45,000 ETH to 50,000 ETH in previous weekly purchases. According to Lee, “Bitmine it has maintained the increasing pace of ETH purchases over the past three weeks.”
As of March 23, Bitmine owns about 4.661 million ETH, which represents more than 3.86% of the entire circulating supply. In addition, this strengthens the company’s position as the largest Ethereum treasury firm in the world, and the second treasury globally behind. Michael Saylor’s strategyholding 761,068 BTC with a massive value of 52 billion dollars.
Featured image from iStock, chart from Tradingview.com
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