Ethereum Whales Ramp Up Their Activity as ETH Inches Closer to the $2,000 Mark 

Image source:  In the crypto space, individuals or organizations that hold a large amount of a certain cryptocurrency are known as crypto whales or simply whales. Because they have access to such massive crypto holdings, any action taken by whales can significantly impact price movements in the market, so the entire crypto community keeps a close eye on their activity. Recently, data provided by IntoTheBlock, a crypto analytics company that uses machine learning and statistical modeling to deliver insights on the cryptocurrency market, has revealed that Ethereum whales have been busier than usual. So, let's take a closer look at the activity of Ethereum whales at the moment and how it might affect the Ethereum price in the future.Ethereum whales are making waves in the market Ethereum, the second cryptocurrency and biggest altcoin by market cap has been the subject of news lately for its mild but stable growth. But while the recent price performance hasn't been exactly impressive, the rapid surge in whale activity over the past few weeks is the event that caught everyone's attention. As IntoTheBlock reveals, the number of Ethereum transactions carrying at least $100,000 has spiked recently, which could only mean that whales are ramping up their activity on the platform. The trend began to take shape shortly after Ethereum topped $1,900 a week ago and managed to maintain its value above this threshold since then. At the time of writing, Ethereum was trading for $1,934. The number of transactions carried out by whales has almost doubled over the course of just a couple of days, between July 2 and July 4, going from 2,120 to 3,230. This marks a surge of over 54% amounting to $2.81 billion. If we calculate the total value of large Ethereum transactions over a week period, the figure comes close to $20 billion.When it comes to ownership distribution, most of the Ethereum supply is in the hands of investors. However, ITB data shows that large Ethereum investors are gaining ground rapidly. In fact, if we compare Ethereum's holder base to that of Bitcoin, we can clearly see that Ethereum whales hold 42% of its total supply while Bitcoin whales hold only 11% of the supply. Therefore, it's not surprising to see that a large number of Ethereum transactions are performed by whales. Not only are Ethereum whales more active lately, but their number has also increased significantly over the past few months. The ongoing accumulation of Ethereum in large investors' holdings could indicate that confidence in the crypto is increasing. ITB has some interesting insights in this respect as well, showing that the amount of Ether owned by whales has jumped from 26.56 million ETH at the beginning of the year to a whopping 30.07 million ETH. With whale dominance being on the rise on the platform, one can conclude that Ethereum is becoming more appealing to traders and investors. Ethereum has always had a competitive advantage in the market for being a hub of innovation and providing unique smart contract functionality which has allowed the development of an entire ecosystem of decentralized applications DApps) and decentralized finance (DeFi) projects around the platform. Ethereum's use cases far exceed that of Bitcoin, spanning a wide range of industries and sectors from and transportation to energy, education or supply chain management. What's more, Ethereum's constant focus on improving its performance, safety and scalability through the numerous upgrades and updates completed over the years has also contributed to the platform's growing popularity. Just a few months ago, Ethereum successfully finalized the last step in its transition from proof-of-work (PoW) to proof-of-stake (PoS), with the launch of the Shapella upgrade. This finally gave validators the possibility to withdraw their staked funds which led to a sudden spike in Ethereum price over the following days. But the most important achievement was the drastic reduction in energy usage, making Ethereum one of the most sustainable blockchains in the market.  The impact of whale transactions on the Ethereum price The large number of Ethereum whales and the hike in their trading activities is generally regarded as a good omen, showing there's increased interest in Ethereum as an investment venue. However, since these major players have the power to influence Ethereum prices through their actions, one should take all possibilities into consideration. If whales decide to sell a big chunk of their holdings all of a sudden, the ETH price could plummet as a result. On the other hand, if whales continue to trade and accumulate ETH in their accounts, the crypto's value will appreciate.Since the Ethereum price has been relatively stable recently, moving closer to the $2,000 threshold, we can safely say that the whale accumulation trend continues. At the moment, there are no reasons to believe that whales might want to sell their ETH holdings, considering that most of the coins are not moving to centralized exchanges. Ethereum has had an overall positive performance since the beginning of the year, gaining over 40% in value and briefly surpassing the $2,000 psychological mark after the Shapella upgrade in April. Wrapping up It's difficult to say with certainty if Ethereum will continue its slow appreciation journey in the following months and will be able to go break above $2,000 once again. But the surge in whale numbers and the increased rate of transactions carried out by these players bring a much-needed dose of optimism to the Ethereum fan base and the crypto community as a whole. Whale activity can serve as a key indicator in assessing the platform's evolution and determining its potential as an investment tool in the long run. Therefore, it's important to keep an eye on these metrics as the Ethereum ecosystem continues to expand and see where the signs lead to.

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