Whale Doubles Down on Ethereum with $7M Buy

An Ethereum whale has made a substantial purchase, acquiring 1,800 ETH valued at $7 million, according to on-chain data from Lookonchain. The purchase occurred when the price of Ethereum was hovering around $3,900. This acquisition is part of a larger trend, as the whale has been actively accumulating Ethereum over the past few months.

Since May 24, the whale has accumulated a total of 39,600 ETH, with this latest buy bringing their total investment to around $99 million. The whale’s average purchase price now stands at $2,487 per ETH. The recent purchase brings their unrealized profit to approximately $54 million, demonstrating a strong belief in Ethereum’s long-term potential.

Whale’s Strategic Accumulation

The whale has made over 6,800 ETH purchases in just the past four months, with multiple transactions showing their growing confidence in Ethereum. This accumulation strategy contrasts with the broader market sentiment, where some investors were adopting a more bearish stance, especially during a dip in September when the price of Ether fell to $2,200. During this period, data from IntoTheBlock revealed that whales sent over $493 million worth of Ethereum in a week, hinting at a strategic buy-low approach.

Ethereum Price Recovery and Market Outlook

Ethereum has since recovered, with the price rising above $4,067 as the market saw renewed bullish momentum, partly driven by political events like Trump’s victory. The whale’s recent purchase comes amid this recovery, suggesting confidence in the continued upside.

Analysts at QCP Capital, based in Singapore, have noted that both Bitcoin and Ethereum are at critical levels, with Ethereum in particular being at an important juncture. Despite some profit-taking at the $4k price level, options data for the December 27, 2024 expiry shows bullish sentiment, with the highest open interest aligning with a potential price squeeze higher.

QCP analysts also pointed out that historical trends suggest Ethereum could see new highs in January, especially following Bitcoin’s halving event, which typically leads to strong market movements. Options markets are showing that ETH risk reversals are favoring call options, which indicates market expectations for a further price surge in the coming months.

This whale’s actions, along with positive market outlooks, signal continued optimism for Ethereum in the long run.