Ethereum Whales Signal Possible Rally as Investor Activity Hits Six-Week High

Market intelligence firm Santiment has highlighted recent moves by large investors, suggesting that Ethereum (ETH) could be on the cusp of a price rally.

According to a recent update on social media, the firm notes that Ethereum whale activity has spiked to a six-week high, pointing to possible accumulation. As Ethereum’s price dipped to $2,380 last Friday, these high-value investors stepped up their transactions, a pattern that historically aligns with future price gains. While Santiment emphasizes that this activity doesn’t guarantee an immediate price surge, it is an encouraging sign for Ethereum’s prospects.

🐳 Ethereum’s whale activity spiked to a 6-week high as its price declined as low as $2.38K Friday. Historically, this is a sign of accumulation from high capital key stakeholders. Though not a guarantee this will have an immediate effect on prices bouncing, it is encouraging! pic.twitter.com/zcofdvszLF

— Santiment (@santimentfeed) October 26, 2024

Santiment’s data also reveals that 6,428 new ETH wallets were created on October 24, the highest number seen in a single day since early September. The firm views this growth in wallet creation as a potential indicator of renewed investor interest in Ethereum, which could add momentum to a possible rally if market conditions improve.

📊 Solana, Jito, Cosmos, and Jupiter have been the notable standouts during a tumutuous up and down week for crypto markets. Data indicates meme coins have drawn increased interest levels while Bitcoin treads water.

Assuming markets keep their underwhelming trajectories going… pic.twitter.com/NYMdIc0tqE

— Santiment (@santimentfeed) October 25, 2024

Beyond whale activity, Santiment points to other factors that might fuel a broader market rebound, including a rise in fear, uncertainty, and doubt (FUD) among investors, as well as an uptick in interest in memecoins. These indicators have historically contributed to volatility but can also act as catalysts for market recovery.

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Santiment also noted that tokens like Solana, Jito, Cosmos, and Jupiter have shown strength during an otherwise rocky period for crypto assets. This shift in interest toward smaller assets reflects broader market sentiment, with meme coins particularly drawing in traders as Bitcoin remains steady. If this trend persists through the weekend, Santiment anticipates that an increase in FUD might pave the way for a market bounce in the week ahead, with Ethereum well-positioned to benefit.

Alexander Stefanov