Ethereum (ETH) has, in the last 72 hours, traded below the critical $4,000 price level as it failed to stabilize above this price. The price dip has not stopped Ethereum whales from aggressively accumulating the asset within the period. In the past three days, these large holders have received 431,018 ETH from different exchanges.
Ethereum price reclaims $4,000 amid whale-driven volatility
As spotted by Lookonchain, an on-chain analytics platform on X, this acquired volume of Ethereum is worth $1.73 billion. The whales withdrew the assets from different exchanges, including Kraken, BitGo, Galaxy Digital and OKX.
The 431,018 ETH were moved into 16 different private wallets. This move is significant considering the direction of flow. Generally, when a holder pulls assets from an exchange into a wallet, it indicates they are unwilling to sell.
The actions of these whales imply that they are not ready to dump off their assets on the market, regardless of the price dip. Additionally, pulling out over 431,000 ETH from these exchanges reduces the circulating supply, which is available for trading.
Such a development is a bullish signal as it creates scarcity in the market. This could catalyze a price rebound in the market. It also suggests that the whales are confident of a higher price value for ETH in the near future, hence they have decided to take their assets to private storage.
Worth mentioning is that despite the bullish accumulation, Ethereum’s price has continued its volatile swings. In the last 24 hours, the Ethereum price has traded between a low of $3,877.82 and a peak of $4,069.17. As of this writing, it exchanges at $4,010.40, representing a 3.08% increase within the period.
The price increase was largely due to the whale accumulations. However, it is unlikely to stay above $4,000 as trading volume is still in the red zone. Currently, this metric is down by a massive 41.63% at $36 billion.
How might whale action affect ETH price outlook?
Meanwhile, as these Ethereum whales are withdrawing from different exchanges to their private wallets, another early investor sprang to life. This wealthy investor, who has been dormant for eight years, recently transferred 200,000 ETH to two new addresses.
It also did not engage in a sell move as it still has a total of 736,316 ETH valued at $2.89 billion across eight different wallets.
These movements of whales within the Ethereum ecosystem have sparked speculation. Market participants are curious as to what agenda the large holders have and the impact it might have on price outlook.
