Ethereum (ETH), the second largest cryptocurrency by market capitalization, recently saw a significant surge in activity, fueled by a remarkable increase in large transactions.
According to Ali, a crypto analyst, Ethereum’s weekly transaction volume skyrocketed by over 300%, with an impressive daily large transaction volume of $17.15 billion recorded on Dec. 7.
Ali noted that “Large Ethereum transactions are surging. The weekly transaction volume has skyrocketed by over 300%, hitting $17.15 billion.”
Large #Ethereum transactions are surging! The weekly transaction volume has skyrocketed by over 300%, hitting $17.15 billion today. pic.twitter.com/3cBBG48RgR
— Ali (@ali_charts) December 7, 2024
The surge in Ethereum’s large transaction volume highlights the increased activity of “whales” — large holders of the cryptocurrency. These large transactions, often exceeding $100,000, highlight a significant increase in whale activity, whether buying or selling.
The increase in whale activity correlates with the recent rise in Bitcoin and Ethereum prices. Bitcoin’s price broke through the long-awaited $100,000 barrier for the first time, reaching all-time highs of $104,000 during Thursday’s trading session.
Ethereum also crossed $4,000 for the first time in months, having previously done so in March of this year.
This increase in large transactions is sometimes interpreted as a bullish indicator, indicating strong demand and optimistic market sentiment.
On Dec. 6, the group of nine Ethereum ETFs saw a net flow of 108,045 ETH worth $433.15 million. On Thursday, Ethereum exchange-traded funds listed in the United States had a record inflow of $428 million.
Ethereum price action
Ethereum crossed $4,000 for the first time during the current market bull run on Friday, reaching a high of $4,096. Since then, the bulls have constantly attempted to break through the $4,000 barrier, but the bears have resisted.
At the time of writing, ETH was trading below $4,000, down 0.35% in the previous 24 hours to $3,996, and up 7.81% weekly.
On the downside, $3,680 and $3,523 are crucial support levels to keep an eye on. Given that Ethereum steadily gained support on the way up, traders may see dips as a buying opportunity. That raises the prospect of a rally above $4,094. Ethereum might potentially reach $4,500. This positive outlook might be dashed in the short term if Ethereum falls and breaks below $3,523.
