Ethereum has recently experienced a remarkable bull run driven by multiple factors, including whale activities, ETH ETF approval, and broader market dynamics. In this blog, we’ll explore the key elements contributing to Ethereum’s recent price surge.

Before we move forward, here’s an overview of Ethereum.

Ethereum Overview

Since its beginning in 2015, Ethereum has been synonymous with Decentralized Applications (DApps) and smart contracts, revolutionizing the blockchain landscape. As a pioneer, Ethereum’s impact on the industry has been immense, setting the stage for the decentralized future.

As Ethereum has shifted to a Proof-of-Stake (PoS) consensus mechanism, the network’s mining operations will have less adverse environmental effects and solve scalability concerns. Ethereum aims to improve transaction speed and reduce costs for users interacting with Decentralized Apps (dApps) on its network by shifting towards Proof-of-Stake (PoS).

Recent Performance of Ethereum

As of 27th May 2024, the price of Ethereum is around $3,927, representing a 114% increase year-to-date. This growth comes after a significant dip during the recent crypto winter, with the price falling from its all-time high of $4800 in November 2021 to around $1200 in October 2022.

The recent price swing can be attributed to several factors, the most crucial of which was the successful approvals for ETH ETFs from the US SEC on 23rd May 2024.

Let’s look at the key factors contributing to the price surge in Ethereum.

#1 Whales Anticipation on ETF Approval

Before the Ethereum ETF was approved, a particular whale address made strategic moves by acquiring significant ETH at a specific price level. This whale’s actions prove how large investors influence market trends and prices.

#2 Whale Acquiring Ethereum and Ecosystem Tokens

An in-depth analysis by Lookonchain revealed that the whale anticipated the approval of the Ethereum spot ETF and made a substantial purchase of ETH. Specifically, the whale acquired 8,733 ETH at approximately $3,054.56 per ETH, totaling around $26.67 million. As a result, the whale now holds an estimated $6 million in unrealized profit.

Following the approval of Form 19b-4 by the Securities and Exchange Commission (SEC), the whale didn’t stop at Ethereum alone. They proceeded to purchase other tokens within the Ethereum ecosystem, amounting to $24.7 million. Among these tokens is the Lido DAO (LDO) token, representing the platform with the highest volume of ETH stakes. The unrealized profit for these ecosystem tokens stands at around $1 million.

#3 Increasing Whale Activities

The activity of whale addresses has been a significant driver of Ethereum’s price action. According to an analysis of Ethereum addresses holding 10,000 or more, ETH revealed substantial movements in recent days.

Data from Glassnode indicated that the number of such addresses had declined before reversing around 19th May. The number of addresses increased from approximately 997 to 1,006. Additionally, the number of addresses holding $100,000 or more worth of ETH also surged, rising from about 117,500 to over 140,000 in the same period.

#4 Fluctuations in Staked ETH

Staked Ethereum also experienced changes, with a brief decline followed by an uptick around 20th May. During this period, the total amount of ETH staked increased to over 32.5 million from around 32.3 million ETH. Recently, the total amount of ETH staked stands at around 32.56 million, representing approximately 27.1% of the total Ethereum supply.

#5 Sustained Bullish Momentum

As of the latest data on CoinMarketCap, Ethereum is trading at approximately $3,873, reflecting a decrease of over 1% in the past 24 hours. The daily time frame chart analysis shows Ethereum’s efforts to maintain the $3,700 price range since reaching that level. The current trend suggests that Ethereum is attempting to establish the $3,600 range as its support.

Source: AMBCrypto

The Relative Strength Index (RSI) shows Ethereum slightly below the overbought zone, indicating a strong bullish trend while also suggesting the potential for a decline, even amidst another potential bull run.

Conclusion

Strategic whale activities, the anticipation and approval of the Ethereum ETF, and ongoing positive market dynamics underpin Ethereum’s recent bull run. While the RSI suggests a robust bullish trend, investors should remain cautious of potential corrections.

Increased whale activity, strategic token purchases, and overall market sentiment drive Ethereum’s price upward, signaling sustained interest and confidence in the crypto.

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.