Key Points
- Whales and retail investors are showing increased interest in Ethereum (ETH), driving up its price.
- Short positions worth $33.02 million have been liquidated due to the sudden increase in ETH’s price.
Ethereum (ETH) has been gaining significant attention from both whales and retail investors.
The cryptocurrency’s price has seen a substantial increase, leading to an extensive liquidation of short positions.
Whales Betting Big on Ethereum
For a while, Ethereum was stuck below the $3,200 mark.
However, a recent surge in interest has pushed its price beyond previous levels.
According to Lookonchain’s data, a whale has been continuously purchasing Ethereum and entering long positions in the ETH/BTC trading pair.
This investor borrowed 2301 WBTC (worth approximately $119.75M) from AAVE and converted it to 41,947 Ethereum at a rate of 0.055, following the launch of the Bitcoin ETF on January 10th.
In the last three days, this whale spent 35 million USDC to acquire 10,952 Ethereum at $3,196.
Retail Investors Joining the Bandwagon
The interest in Ethereum is not limited to whales.
Retail investors have also been accumulating substantial amounts of Ethereum.
This combined interest from both whales and retail investors suggests a relatively bullish sentiment across all sectors of the crypto market around Ethereum.
As a result of these factors, the price of Ethereum has surged significantly.
At the time of writing, Ethereum was trading at $3,311.78, marking a 6.08% increase in the last 24 hours.
This price increase has led to more bullish speculation around Ethereum ETFs, adding further momentum to Ethereum’s rally.
Despite the recent surge in price, the MVRV ratio for Ethereum remains negative, indicating that most holders are still unprofitable.
It’s likely that these holders will wait for prices to appreciate further before taking profits.
The sudden increase in Ethereum’s price has also resulted in a large number of short positions being liquidated, amounting to $33.02 million.
