Ethereum (ETH), despite not meeting expectations in its recent bull run, has maintained its relevance in the cryptocurrency market. Currently trading at around $2,200, ETH has experienced a year-on-year decline of 42%.
Recently, there has been skepticism in the crypto community regarding Ethereum’s ability to replicate the gains seen by other cryptocurrencies. However, new developments indicate a potential increase in value. Ali Martinez, a well-known X user, pointed out a significant movement of whales who purchased 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 suggests a potential reduction in the circulating supply of ETH, which could boost its future value through scarcity.
Interestingly, whales had already increased their buying in late February, during a period of significant bearishness in the market. During that time, the price of ETH dropped to $2,100, but soon after, it experienced a rapid recovery, briefly surpassing $2,500.
Another promising 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 are opting for self-custody, which reduces selling pressure in the market.