Ethereum (ETH), despite not meeting expectations during its recent bullish phase, has maintained its significance in the cryptocurrency market. Currently trading at approximately $2,200, ETH has experienced a year-on-year decline of 42%.
The crypto community has recently expressed some doubt regarding Ethereum’s potential to replicate the gains seen by other cryptocurrencies. However, new developments indicate a potential increase in value. Ali Martinez, a well-known X user, has drawn attention to a significant movement of whales who acquired 1.1 million tokens in just 48 hours, posing the question, “Do they know something we don’t?” Based on current prices, the purchase of these tokens amounts to a staggering $2.4 billion. This move could suggest a decrease in the circulating supply of ETH, potentially boosting its future value through scarcity.
Interestingly, whales had already increased their buying activity in late February, during a period of significant market bearishness. At that time, the price of ETH dropped to $2,100 but quickly recovered, briefly surpassing $2,500.
Another positive factor for Ethereum is the recent trend in net exchange inflows. According to CryptoQuant, this metric has been consistently negative in recent days, indicating that more investors prefer self-custody, which reduces selling pressure in the market.