As the price of Ethereum resumes, bullish investor sentiment has improved. Large Ethereum investors are quietly increasing their exposure to the altcoin following the recent surpassing of the $2,000 price level. Another development acting as a catalyst for this renewed confidence concerns Tom Lee’s latest remarks on the asset’s outlook.
Tom Lee backs Ethereum and big players stack ETH
While Ethereum As the economy slowly regains its upward momentum, a new wave of accumulation is emerging beneath the surface of the recent uptrend. This new accumulation is taking place among large investors or whales, signaling renewed confidence in the asset’s prospects.
Santiment, a popular market intelligence and data analytics platform, revealed wallet addresses holding between 100 and 100,000 ETH have increased over the last 2 days. During this short period, these investors collected an additional 756,950 ETH.
As accumulation increases during a price rebound, this suggests that ETH whales are taking advantage of the current state of the market to increase their exposure. Such action from large holders is generally interpreted as a sign of strong confidence in the long-term trajectory of the altcoin.
As large investors buy more ETH, smaller holders, those considered shrimp, are slowly dumping their reserves. Since mid-December, wallet addresses holding less than 0.01 ETH have collectively sold more than 0.9% of their supply. This divergence highlights a shift in market sentiment, with wealthier players optimistic while smaller investors become more cautious.
Given the influence of the great investor actions In the market, the transfer of ownership to major players could lead to a tightening of supply, which could impact the price action of Ethereum in the short term. If this continues, it will likely trigger a stronger rally for the altcoin.
Bitmine still buys more ETH in the face of volatility
According to Santiment data, the increase in whale accumulation follows recent comments made by Tom Leewhose bullish attitude towards the altcoin has contributed to the expansion of the bullish narrative. Tom Lee, Chief Executive Officer (CEO) of Bitmine Immersion, declared that the company’s base case for Ethereum is that the auction is in the latter stages of the “mini crypto winter.” The statement simply fueled optimism as institutional voices and on-chain behaviors begin to converge.
Adding to this bullish statement is the company’s latest ETH purchase, amassing 65,341 ETH over the past week. This figure marks a significant increase in purchasing activity compared to an average of 45,000 ETH to 50,000 ETH during previous weekly purchases. According to Lee, “Bitmin has maintained the accelerating pace of ETH purchases in each of the last three weeks.
As of March 23, Bitmine owned approximately 4.661 million ETH, which represented over 3.86% of the entire circulating supply. Additionally, this strengthens the company’s position as the world’s largest Ethereum treasury company and the second largest global treasury company behind Michael Saylor’s strategywho owns 761,068 BTC valued at $52 billion.
Featured image from iStock, chart from Tradingview.com
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