Analysts said there is growing demand for Ethereum due to the growing attractiveness of the digital currency for enormous investors.

Whale activity serves as one indicator that the cryptocurrency is gaining momentum for possible significant growth, capitalizing on positive market sentiment in the cryptocurrency industry.

Increasing whale activity

Santiment reported that the number of transactions made by Ether whale numbers have seen a huge augment in recent days.

ETH whales refer to enormous investors who have the ability to influence market sentiment and the availability of digital coins.

📈 Ethereum, currently valued at 3.12 thousand dollars, is finally showing the growth that has helped it climb to the second place in the ranking of market assets in terms of market capitalization, largely maintaining this position for the last 8 years.

Whale transaction data shows a significant augment in activity from key stakeholders.… pic.twitter.com/CWPpeMPWla

— Santiment (@santimentfeed) November 10, 2024

Analysts said ETH’s daily transaction value has already reached $10.4 billion, fueled by growing whale activity and the increasing number of daily Ethereum transactions, saying this is a bullish indicator for the digital currency network.

This also indicates that enormous investors, smaller investors and institutions are becoming more involved in ETH.

According to analysts, Ethereum has hit a 14-week high due to hefty whale activity, indicating that venture capitalists are once again confident in the coin.

Market traders added that if multiple enormous wallets buy or hold ETH, they believe these actions could bring benefits in the form of price support and price increases. They consider this a “good signal” of the true state of affairs in the market.

On the road to growth

Analysts said the high volume of ETH trades indicates that the coin may be closer to a recent record, explaining that these trades showed that the coin draws in a bull market cycle, which often leads to an augment in the price of cryptocurrencies.

Currently, the price of ETH has increased by 5.21% in the last day and is currently trading at $3,184.

Market observers have noted that powerful network activity in cryptocurrencies means high stability of the coin’s price, which positions ETH as both an asset and an ecosystem. A perfect combination that usually guarantees more investors participating in the blockchain.

#Ethereum $ETH Today’s price of $3,000 is just the beginning! https://t.co/gpAfqbe2v5

— Ali (@ali_charts) November 9, 2024

Only the Beginning

Analyst Ali Martinez sees ETH breaching the $3,000 level as a positive sign of the bullish narrative for the coin, saying this is just the beginning of its rally, which could reach $10,000.

Meanwhile, venture capitalist Henrique Centieiro said ETH was heading towards what he called “scarcity mode.” Centieiro explained that over 42.6% of all Ethereum is currently locked in staking contracts, which could contribute to a reduction in the availability of coins on exchanges, which is a perfect recipe for price increases.

He added that such conditions and the growing attractiveness of ETH for investors indicate a powerful return from ETH in the long term.

Featured image from Forbes, chart from TradingView