© Reuters Ethereum (ETH) Bullish whales return with huge long positions
U.Today – A recent flurry of whale activity has injected curiosity and anticipation into the market. According to on-chain analysis, one of those whales has notably repositioned its holdings, selling 12,048 ETH worth approximately $23.4 million to pay off debt, after initially acquiring it from Binance when ETH was trading around 1,768. Dollars.
This whale, along with others, has used ETH as collateral on DeFi lending platforms like Aave and Compound to borrow stablecoins, with the intention of purchasing even more ETH. This suggests a strategic vote of confidence in the potential for price appreciation. Furthermore, the withdrawal of a hefty sum of 21,076 ETH, valued at $41.23 million, from Bitfinex for two new wallets indicates a trend of whales moving their funds into cold storage for long-term preservation. This behavior typically results in decreased liquidity on exchanges and can potentially drive up the market price.
In a major transaction, the aforementioned whale placed 7,324 ETH, equivalent to $14.3 million, as collateral on Compound to borrow 9 million USDT, which was subsequently transferred to Binance. This sequence of transactions is likely aimed at purchasing more, thereby expanding the whale’s position in the coin. Such actions reflect a bullish outlook, with these major players positioning themselves to benefit from anticipated price increases and potentially putting upward pressure on the value of ETH.
ETH whales’ strategic moves underscore sustained bullish sentiment and a long-term investment outlook. With ETH holding support above the $1,970 mark, these investors are taking advantage of opportunities to accumulate more cryptocurrencies. However, the market remains alert as massive selling by these whales could trigger a market pullback if they decide to take profits.
This article was originally published on U.Today.