Assessing the effects on ETH as whales start to show interest

• Ethereum’s whales have reignited their interest in ETH.
• Interest in NFT trades on the network fell.

Despite the recent volatility experienced by Ethereum [ETH], there has been a noticeable increase in the altcoin over the past few days. Recent whale behavior also supported this notion.

Whales move in

According to Lookonchain, a substantial whale withdrew 12,600 ETH, equivalent to $29 million, from Binance [BNB].

Impressively, this whale has made a total withdrawal of 19,980 ETH, totaling $46 million, within the past week.

A whale withdrew 12,600 $ETH($29M) from #Binance 2 hours ago and has withdrawn a total of 19,980 $ETH($46M) in the past week.https://t.co/ysT99jPmVj pic.twitter.com/xvFh0zm5TD

— Lookonchain (@lookonchain) February 4, 2024

Such significant movement in funds by large holders is often perceived as positive for ETH, indicating potential confidence among investors, which can positively influence the altcoin’s price.

However, the concentration of a significant amount of ETH in the hands of a few large holders can lead to increased market manipulation and volatility as well.

If these whales decide to sell off a substantial portion of their holdings simultaneously, it could trigger a rapid price decline, causing panic selling among smaller investors and worsening market instability.

Therefore, while whale accumulation may initially indicate bullish sentiment, it also introduces an element of vulnerability to sudden and impactful market movements.

Looking at the price of ETH

At press time, ETH was trading at $2,316.11 and its price had grown by 1.11% in the last 24 hours. However, the surge in the price of ETH wasn’t significant enough to reverse ETH’s bearish trend.

Network Growth had also plummeted over the last 24 hours, showing that new addresses had started to lose interest in ETH.  This decline could affect the token’s liquidity, and market demand as well.

Ethereum’s velocity also experienced a decline during this timeframe, signifying a reduction in the frequency at which ETH was being traded.

How much are 1,10,100 ETHs worth today?

A lower velocity may suggest a lack of short-term trading interest, potentially impacting price volatility and overall market dynamics for Ethereum.

Source: Santiment

Coming to the state of the Ethereum network, it was seen that the gas usage on the network remained the same. However, overall NFT trades occurring on the network declined.

Source: Santiment