Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has recently experienced a surge in activity driven by a notable increase in large transactions. Crypto analyst Ali reported a remarkable 300% increase in Ethereum’s weekly transaction volume, with a daily large transaction volume of $17.15 billion recorded on Dec. 7. The surge in large transactions indicates heightened activity among “whales,” or large holders of the cryptocurrency, making transactions exceeding $100,000.
The rise in whale activity coincides with the recent surge in Bitcoin and Ethereum prices. Bitcoin broke through the highly anticipated $100,000 mark, reaching an all-time high of $104,000, while Ethereum surpassed $4,000 for the first time in months. This increase in large transactions is often seen as a positive sign, suggesting strong demand and positive market sentiment. On Dec. 6, nine Ethereum ETFs saw a net flow of 108,045 ETH worth $433.15 million, with record inflows of $428 million in Ethereum exchange-traded funds listed in the United States.
In terms of price action, Ethereum reached a high of $4,096 during the current market bull run but has struggled to break through the $4,000 barrier. At the time of writing, ETH was trading below $4,000, down 0.35% in the previous 24 hours but up 7.81% weekly. Key support levels to watch for are $3,680 and $3,523, with traders viewing dips as potential buying opportunities. If Ethereum manages to hold above $3,523, there is a possibility of a rally towards $4,500. However, a break below $3,523 could dampen this positive outlook in the short term.
Overall, Ethereum’s surge in large transactions and price action indicate increased activity among whales and positive market sentiment. The recent rise in Ethereum’s price, along with record inflows in Ethereum ETFs, suggests growing investor interest in the cryptocurrency. While challenges remain in breaking through the $4,000 barrier, Ethereum’s steady gains and buying support may pave the way for further upside potential. Traders will closely monitor key support levels and market dynamics to assess Ethereum’s future price movements in the ever-evolving cryptocurrency landscape.
