Despite the widespread losses in crypto markets, Ethereum whales have been buying and selling Ether (ETH), at a rate never seen since January of this year.
Santiment data shows that Ethereum whales executed a total 2,956 transactions on Wednesday. Each transaction was valued at more than $1M, making it the most successful day for whale transactions in almost 5 months. Santiment clarified that whales can be defined as accounts holding $1M to $10M.
Today’s #Ethereum whales were extremely active, completing 2,596 transactions worth $1M or more. This is the most whale transaction day since January. It will be interesting to see if $ETH drops below $2k, as this was the case last July. https://t.co/FZoTsFJwEn pic.twitter.com/MVFEpzysxN
— May 11, 2022, Santiment (@santimentfeed).
These data are coming as the ETH/BTC paring continues to show relative strength despite Terra-based contagion which continues to place downward pressure on market sentiment and general sentiment.
ETH/BTC hit a three-week high earlier this week, May 6. Market analysis from Cointelegraph suggests that the paring may hint at a breakout, especially as Bitcoin (BTC), and Ether approach what Santiment calls their “historic buy zone”.
Ethereum has grown nearly 250% against Bitcoin in the time since the Beacon Chain was live. This marks the beginning of Ethereum’s migration to proof-of stake in December 2020.
The Ethereum whales are not the only ones busy — Glassnode data shows that Wednesday was also the biggest day for Bitcoin transfers from Whale Entities to exchanges.
Carlos Gomez from Belobaba, the chief investment officer of their crypto hedge fund, stated that crypto investors may be closer to the bottom than they realize.
It’s not hard to see? pic.twitter.com/PQwfb6Eu4z
— Carlos Gomez (@hedgefundcarlos) May 11, 2022
Gomez stated that the graph above shows a “clearly coordinated move of most large holders within a particular 24-hour-window,” which means that whales continue to hunt for weak hands.
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Gomez said that while it is difficult to know if the bottom is in, he added that recent evidence suggests that we are not far away from it. However, he suggested that “recent data shows that we’re not to far from it — however, the only problem is that we may have to stay down here for a few more weeks before moving up again.”