Ethereum (ETH) whales are defying market uncertainty by expanding their holdings. Despite recent price drops and regulatory concerns, one whale wallet has withdrawn nearly 39,300 ETH from Binance, the world’s largest cryptocurrency trading platform.
This surge in whale activity suggests a shift in investor sentiment, with funds potentially being moved to safer havens amidst eroding confidence in centralized entities.
On-chain analytics firm Lookonchain highlighted the significant withdrawals in a series of transactions over the past month. Each withdrawal followed a price drop, and the total accumulated ETH in the whale’s wallet exceeds $70 million at the current market price.
Notably, while Binance.US announced the suspension of USD trading and witnessed a large outflow of crypto assets, ETH formed the majority of the withdrawn assets, according to research firm Nansen.
A wave of withdrawals by whales historically signifies reduced sell-off risks and indicates investor anticipation of a bullish surge.
However, in the current climate, this accumulation may reflect a lack of confidence in centralized entities, prompting investors to seek safer alternatives.
Further evidence supporting this trend is provided by Santiment’s data, which reveals that the percentage of ETH supply on exchanges has reached a record low of 9.45%, while top non-exchange addresses have experienced a substantial increase in ETH holdings over the past month.
The recent FUD (fear, uncertainty, and doubt) triggered by U.S. regulators has affected ETH, driving its price down to its lowest level since the end of March.
However, despite negative price action, futures market traders continue to bet on ETH’s upward trajectory. The positive funding rate for ETH indicates the prevalence of bullish long positions, as reported by Coinglass.