Behind Ethereum’s Surge: Here’s How This Whale Is Taking Advantage Of The ETH Rally
February 13 2024 - 8:30PM
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In recent weeks, Ethereum has witnessed a noticeable uptick in its
market price, reaching a one-month high and showcasing a growing
demand for the asset. Amid this development, the on-chain analytics
platform Lookonchain revealed an Ethereum whale’s noteworthy
strategy, marking a bold stance on Ethereum’s future trajectory.
Strategic Accumulation Amid Rising Prices According to
Loookonchain, an unknown whale has been actively increasing their
Ethereum holdings, utilizing the Spark platform’s revolving loan
feature. Spark platform is a decentralized finance (DeFi) product
that enables users to borrow stablecoins like USDC or DAI against
their cryptocurrency holdings. Related Reading: Crypto Drama
Unfolds: Ethereum Co-Founder’s 22,000 ETH Transfer Sparks Price
Speculation This investor has managed to withdraw 39,900 ETH worth
roughly $99.5 million from major exchanges such as Binance, Bybit,
OKEx, and Bitfinex, leveraging the flexibility of revolving loans
to boost their position in Ethereum. Further insights from
Lookonchain reveal that these withdrawals by the whale represent a
continuous strategy rather than an isolated event. Since the start
of the month, the whale has consistently been pulling out ETH,
averaging a withdrawal price of $2,492, and has secured about 56.8
million DAI in loans from the Spark platform so far. A whale is
accumulating $ETH and going long $ETH by revolving loans on #Spark!
The whale has withdrawn 39.9K $ETH($99.5M) from #Binance, #Bybit,
#OKEx and #Bitfinex since Feb 1 at an average price of $2,492, and
borrowed 56.8M $DAI from #Spark.https://t.co/9EQSrwHnJD
pic.twitter.com/6CydURt2pc — Lookonchain (@lookonchain) February
13, 2024 While bold, this strategy highlights the optimism
surrounding Ethereum’s potential growth, especially in anticipation
of the upcoming altcoin bull run and the expanding interest in
Ethereum-based investment products like the spot exchange-traded
funds (ETFs). Spotlight On Ethereum Spot ETFs While the United
States Securities and Exchange Commission (SEC) is yet to disclose
any latest update on the already filed applications of the spot
Ethereum ETFs, asset manager Franklin Templeton has recently jumped
on the spot ETH ETF queue. A recent post by James Seyffart, an
experienced analyst at Bloomberg Intelligence, highlights that
Franklin Templeton has joined the ranks as the eighth firm in the
cryptocurrency sector to apply for product authorization. This
follows submissions by other prominent asset managers for Ethereum
ETFs, namely Hashdex, BlackRock, Fidelity, Ark and 21Shares,
Grayscale, VanEck, Invesco, and Galaxy. Here’s the most recent
table of other filers that I have pic.twitter.com/xCRRMwK76r —
James Seyffart (@JSeyff) February 12, 2024 These developments come
when Ethereum has sustained a positive momentum, closely tracking
Bitcoin’s performance. The asset has witnessed more than 10% surge
in the past week, maintaining this upward trend with an additional
nearly 1% increase in the past 24 hours. Related Reading: Ethereum
Price Rallies 5%, Why ETH Bulls Could Aim For $3K This Month This
price performance has elevated Ethereum to a current trading value
of $2,614 as of this writing. Featured image from Unsplash, Chart
from Tradingview
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