- Prominent whales have switched from Bitcoin to Ethereum.
- Ethereum ETFs and the Dencun upgrade may have played a role.
Bitcoin in recent weeks [BTC] has been the primary focus for both retail and whale investors, attracting a lot of attention due to its rising prices.
However, recent data has suggested a shift in sentiment, such as Ethereum [ETH] appeared on the radar of whale investors.
Whales change posture
According to data from Lookonchain, a substantial move occurred when a whale switched from a bullish stance on BTC to a bullish stance on ETH.
This strategic shift involved exchanging 1,500 ETH for 88.68 WBTC, totaling $4.58 million on February 26, with the intention of shorting the ETH/BTC pair.
After this first maneuver, the whale performed another exchange, converting the acquired 88.68 WBTC back into 1,597 ETH, worth $5.57 million.
This adjustment resulted in a net profit of 97 ETH, which amounts to $338,000.
Source:
This transition to Ethereum aligned with growing anticipation around Ethereum ETF approvals and increased excitement surrounding the Dencun upgrade.
These factors could potentially attract more interest and investment in Ethereum, positioning it as a favorable asset in the eyes of both retail and institutional investors.
However, despite this positive sentiment, Ethereum has faced challenges, most notably persistently high gas fees, on its network.
These fees are a concern and could negatively impact investor sentiment, especially for smaller traders looking to enter into trades.
The high cost may force users to look for cheaper alternatives, such as Solana [SOL]which could have long-term implications for Ethereum.
Watch ETH
Despite this, gas consumption on the Ethereum network has remained relatively consistent in recent days.
Examining the price movement, Ethereum was trading at $3,469.49 at the time of writing, growing 1.56% in the past 24 hours.
While the positive price movement was encouraging, other concerning issues also emerged.
Is your portfolio green? Check out the ETH profit calculator
Notably, Ethereum’s network growth saw a decline, indicating reduced interest from new addresses.
This could pose a challenge to Ethereum’s continued growth, raising questions about broader market sentiment surrounding the altcoin.
Source: Santiment