Ethereum Rally, Whales React… All-Time High Optimism

Ethereum (ETH) has surged to its highest level in almost 4 years, standing at 13.5% below its all-time high.

The new momentum has triggered mixed activity among crypto whales. Some are accumulating in anticipation of further increases, while others are taking profits as the market approaches record-breaking levels.

Crypto Whales Near Ethereum's Peak Price…Strength Reversal

Yesterday, BeInCrypto reported that ETH broke through $4,000 for the first time in 8 months. The upward trend has continued to accelerate since this milestone.

The second-largest cryptocurrency reached $4,331 in early Asian trading today, the first time since December 2021. At the time of reporting, the price was adjusted to $4,229.45, which is a 1.45% increase over the past day.

With the price $648 lower than the record $4,878 in November 2021, Ethereum whales are adjusting their positions. On-chain data shows mixed reactions among whales.

X (formerly Twitter) post by LookOnChain highlighted that some large players are moving significant capital into Ethereum.

A whale with wallet address 0xF436 withdrew 17,655 ETH, worth $72.7 million, from exchanges. The blockchain analysis company added that this whale might be acting on behalf of Shaprlink Gaming.

Another whale, wallet 0x3684, purchased 8,109 ETH at $4,193 each using 34 million Tether (USDT). Notably, Ethereum's recent rally has drawn back players who previously sold their holdings.

LookOnChain mentioned that Arthur Hayes, CIO of Maelstrom, sold 2,373 ETH worth $8.32 million in early August when ETH was around $3,507.

Yesterday, he transferred 10.5 million USDC (USDC) to repurchase ETH at a higher price.

"I had to buy back everything, will you forgive me @fundstrat? I promise I won't take profits again," Hayes said.

Hayes is not alone. An unidentified whale sold 38,582 ETH when the price dropped to $3,548 and then bought back at $4,010.

"Sold low and bought high, losing over $17 million. Market volatility can cause fear, but history shows that strong hands often win in cryptocurrency," a crypto market observer wrote.

Major ETH Whales Reducing Holdings Despite Positive Momentum

Nevertheless, whale behavior was not consistently optimistic. According to LookOnChain, Eric Voorhees, an early Bitcoin advocate and founder of ShapeShift, sold 6,581 ETH worth $27.38 million at $4,161.

Despite the recent transaction, he still holds 556.68 ETH, worth approximately $2.3 million.

"We were established before Ethereum existed. We remain optimistic about ETH," ShapeShift posted.

Another notable movement came from Ethereum co-founder Jeffrey Wilcke. He recently deposited 9,840 ETH (about $9.22 million) to Kraken.

Just three months ago, Wilcke transferred 105,737 ETH to eight newly created wallets. He currently holds 95,897 ETH, worth approximately $401 million.

In a separate case, OnChain Lens observed a whale who had been inactive for a long time moving funds after 5 years. This crypto whale deposited 5,000 ETH, worth $21.14 million, to Binance, bringing a profit of about $45.38 million.

"The whale first received 55,001 ETH from BitZ 7 years ago for $6.73 million. The whale still holds 5,001 ETH at $21.07 million." – OnChain Lens added.

The contrasting movements from massive accumulation to significant profit-taking reveal a sentiment split among major ETH holders.