Analysts reported that there is a growing demand for Ethereum due to the increasing appeal of the digital currency to large investors.

The whale activity serves as one of the indicators that the cryptocurrency is gaining momentum for possible significant growth, capitalizing on the positive market sentiment on the crypto industry.

Growing Whale Activity

Santiment reported that the number of transactions made by Ethereum whales saw a huge spike in recent days.

ETH whales refer to large investors who have the capability to influence market sentiments and the availability of digital coins.

Ethereum, currently sitting at $3.12K, is finally showing the growth that helped it climb to the #2 ranked market cap asset in crypto, largely staying in this position throughout the past 8 years.

Whale transaction data indicates a major spike in key stakeholder activity.… pic.twitter.com/CWPpeMPWla

— Santiment (@santimentfeed) November 10, 2024

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

It also indicates that there is an increasing engagement on ETH from large investors, smaller traders, and institutions.

According to analysts, Ethereum hit a 14-week high because of the high whale activity, indicating that high-risk investors once again find confidence in the coin.

Market traders added that if many large wallets buy or hold ETH, they believe that these activities can benefit the price support and price hike. They view it as a “good signal” of the real state of affairs in the market.

On Track To Growth

Analysts said that the high volume of ETH transactions indicates that the coin could be closer to a new record high, explaining that these transactions showed that the coin’s draw in a bull market cycle which often led to an increase in crypto price.

As of the moment, ETH went up by 5.21% in the past day and is now being traded at $3,184.

Market observers noted that a strong network activity in crypto means there is high price stability in the coin’s price, putting ETH both an asset and the ecosystem. A perfect combination that usually guarantees more investors participating in the blockchain.

#Ethereum $ETH at $3,000 today 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 mark as a positive sign of a bullish narrative for the coin, saying that is only the beginning of its surge potentially hitting $10,000.

Meanwhile, Henrique Centieiro, a venture capitalist, claimed that ETH is moving towards what he coined as the “scarcity mode”. Centieiro explained that more than 42.6% of all Ethereum are currently locked in staking contracts which may contribute to a dwindling availability of the coins in exchanges, a perfect recipe for a price rally.

He added that such conditions and the growing appeal of ETH to investors indicate a strong return from ETH in the long run.

Featured image from Forbes, chart from TradingView