Ethereum whales have started returning to the arena as the price has picked up once again. This return marks a turn for the digital asset, which has suffered from major sell-offs over the last few weeks. So far, they have more than doubled their activities in a single day period, showing a renewed interest in the market. The implications of this would be that Ethereum whales are driving the recovery and could trigger the start of the altcoin season.
Ethereum Whale Transactions Double In 24 Hours
According to the on-chain data aggregation website, IntoTheBlock, Ethereum whales have been one of the most active in recent days. The data alludes to an over 100% increase in their transaction volumes, as well as the number of transactions in a 24-hour period. The large transaction volumes alone rose 164.14% by Tuesday, bringing the total dollar value to around $7.84 billion.
For comparison, these large transactions involve transactions carrying at least $100,000 at the time they were moved. On Monday, there were only 3,080 transactions recorded. However, by Tuesday, this number had ballooned to almost 6,000. From here, the trend had grown, and an even higher rise was recorded in the volume of ETH that was transacted.
Compared to the total 1.18 million ETH that was moved by these large investors back on Monday, a total of 3.03 million ETH was moved by Tuesday alone. This translated to an over 150% increase in the volume of ETH transacted. This also carried on into the volume in dollars, moving from $2.97 billion on Monday to $7.84 billion on Tuesday.
The rise in the large transaction volumes coincides with the rise in the Ethereum price from around $2,500 to $2,700. This suggests that more of this volume was whales buying rather than selling, thus leading to the jump in the price of Ethereum.
Can This Trigger An Altcoin Season?
Historically, Ethereum has always been the leader of altcoin season, given its position as the largest altcoin in the market. This is also due to the fact that many of the top altcoins in the space are built on Ethereum’s infrastructure, making them a beta play to the second-largest cryptocurrency. So when the ETH price rose, so did the price of altcoins.
Given this trend, it is expected that Ethereum will once again lead the next altcoin season, and if its price continues to rise, the rest of the altcoin is expected to rise with it. However, there is still a problem as the Bitcoin dominance remains very high and would need to fall for the next altcoin season to begin. Ethereum would have to outperform Bitcoin, and so far, this has not been the case as ETH is yet to reach a new all-time high after Bitcoin, stalling the altcoin season.
Featured image from Dall.E, chart from TradingView.com
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