Key Points
Over the past few days, a large Ethereum holder has been buying up large quantities of ETH. These assets are then removed from exchanges. This activity has been happening despite an increase in the overall supply of ETH on exchanges.
Whale Accumulation and Exchange Supply
Spot on Chain data reveals a notable Ethereum whale’s activity. This whale withdrew 9,277 ETH, approximately $27 million, from Binance. The same day, the whale also withdrew 6,883 ETH and 20 million USDT from 1Inch. The total accumulation by the whale that day was 16,160 ETH, roughly $47 million.
The data also shows that over four days, the whale bought 87,819 ETH at an average price of about $2,875. This purchase amounts to approximately $252.5 million. This recent accumulation has increased the whale’s total holdings to 112,966 ETH, estimated to be worth around $334 million.
Despite these accumulation trends and the observed negative exchange inflow reported by CryptoQuant, one might have expected a decrease in the supply on exchanges. However, Santiment’s supply on exchange data showed a recent increase. The chart indicated that from around 13th January, the supply has risen by about 2 million.
As of this writing, the supply on exchange was 12.66 million, up from around 10.66 million in early January. Despite this increase, the supply on exchanges remains significantly lower compared to the supply outside of exchanges. Further analysis showed that 121.12 million ETH are currently held off exchanges.
A close look at the Ethereum price trend on a daily timeframe chart showed a decline of over 1% on 21st February. This decrease followed the previous day’s surge into the $3,000 price range, which led to a considerable increase in liquidation volume.
By the close of trading on 21st February, ETH was valued at about $2,968, reflecting a 1.53% decline. At the time of this writing, the price had recovered slightly, showing an increase of around 0.7% and trading at about $2,989.
The volume chart on the price chart showed a significant surge in selling pressure during the prior trading session, which contributed to the decline in Ethereum’s price. Despite this, the accumulation activity by a notable whale suggests a prevailing belief that the price of ETH is poised for further upward movement.
