Whale Purchases Ethereum Futures Worth $1.7 BillionJuly 21, 2022
It looks like the ongoing development of the Ethereum network will favor its price. This is in spite of the huge fall it has experienced for most of this year. Investors have shown that they are ready for a potential surge in Ethereum prices.
Increased Whale Activities
The recent mass Ethereum purchase by investors made their preparedness clear. Crypto Quant recently published a report written by a web 3 researcher, Kate Young. The research published on Twitter said on-chain activities reveal strong whale movements.
Young said a whale purchased Ethereum futures to the tune of $1.7 billion. This was recorded in separate transactions carried out within one hour.
According to market estimates and events, it is the largest hourly order for Ethereum futures. The last seven months have seen order at such magnitude. Note that Ethereum futures values are got from Ethereum and reference contracts to buy and sell later.
The Ethereum whales’ action indicates that the token’s recent recovery is gaining more traction. And it is now likely to continue. At the time of this report, the asset price was up by 48%.
The recent price is more than what was obtained in the past week. Ethereum currently trades at $1,500. Compare with Bitcoin which had just a 19% increase in the same time. Ethereum’s increase has been nothing short of impressive and astronomical.
It should be noted that Ethereum futures pressure supports the latest whale purchasing pattern. It is usual for Ethereum whales to escalate their hoarding pattern following an average start. It was so in mid-June and it reached more than 20% by 18th July.
The Effect of the Merge
Ethereum’s merge of its decentralized finance to proof-of-stake from the initial proof-of-work is scheduled for September. Ethereum began to recover in tandem with general market events as the merge stays in view.
Ethereum might trade over $1,700 by the year’s end as a result of the merge. Layer 2 is going to give it more leverage than ever before.
Miners have been moving away from Ethereum because of the coming upgrade. But activities have surged on other assets such as Ethereum Classic, ETC.
After updates were released on the upgrade, Ethereum Classic jumped by almost 50% per week. And it promptly got ready to aid proof-of-work miners and the general Ethereum hash rate.