Key Points
On-chain data reveals a significant whale is rapidly acquiring Ethereum (ETH).
This individual is selling large volumes of Wrapped Bitcoin (WBTC) through Aave, a well-known non-custodial protocol.
Whale’s Activity on Aave
Lookonchain data on February 16 indicated that the whale borrowed 280 WBTC, equivalent to around $14.6 million, from Aave, a leading DeFi protocol.
The whale then purchased 5,150 ETH.
This individual is actively buying ETH, not from centralized exchanges but through decentralized protocols.
This activity suggests that the trader anticipates ETH to outperform Bitcoin in the upcoming period.
The catalyst for the whale’s decision to accumulate ETH and sell the resurgent Bitcoin remains unclear.
However, it is known that Ethereum has been outperforming Bitcoin in terms of price and various other metrics since mid-January.
For example, ETH has risen approximately 13% against BTC in the last trading month.
Despite ETH prices retreating from January’s peaks, the uptrend persists.
Looking at the daily chart, BTC bulls have regained some of the losses against ETH.
However, they have not completely reversed the losses experienced in January.
The immediate support is currently at 0.052 BTC, which represents the February lows.
A significant drop below this crucial support could strengthen BTC in the short to medium term.
The broader crypto community remains optimistic about Bitcoin, despite the crypto whale’s preference for ETH.
According to the daily chart, BTC is currently at around its 2024 highs, the highest in slightly over two years.
Experts and analysts predict further gains in the coming days.
As long as BTC stays above the psychological support level of $50,000, the chances of the world’s most valuable coin rising to $70,000 or higher remain high.
Both Wall Street and retail investors are investing billions of dollars into BTC, following the approval of spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC).
At the same time, the consensus among investors and traders is that Bitcoin will surge, given the expected supply shock when the network halves miner rewards in early April.
If the current demand persists, the resulting imbalance could propel BTC to six figures.
Meanwhile, the increase in Bitcoin prices has boosted altcoins, with Ethereum gaining in dollar value over the past few weeks.
Although the coin is capped below $3,000, supporters anticipate further gains in the medium term, citing the growing defi sector and the expanding total value locked (TVL) according to DeFiLlama data.
