Ethereum News: Whales Bet on ETH Upgrades Amid Weak Market

Key Insights

• Exchanges saw massive Ethereum withdrawals last week. Investors pulled out about 330,000 ETH. The tokens, worth over $660 million, left centralized platforms.
• Weekly transaction count on Ethereum is at an all-time high. At the same time, the median transaction fee is at an all-time low. This was a clear divergence.
• This divergence suggested that Ethereum’s scaling upgrades were working. Could whales be betting on ETH upgrades while the market drops?

Per recent Ethereum news, ETH gained only 4% in the past 24 hours while the broader market continued to weaken. Despite these gains, Ethereum was still trading way below its valuation when most altcoins peaked.

The largest altcoin, Ethereum, was struggling to stay above $2,000, which prompted market participants to act. At the moment, the market is fearful, and traders are fading away from buying. However, some people saw the crisis as an opportunity.

They were likely betting on ETH upgrades that would boost its use, or they knew something was coming. What was the actual driver of these significant purchases?

Ethereum News: Massive ETH Accumulation Ongoing

Ethereum news reported by Ali Charts showed the accumulation of the altcoin from exchange data. More than $660 million worth of ETH, or over 330,000 ETH, left exchanges in the last week.

For context, exchange balances went down from 8.34 million on February 6th to 7.93 million on February 11th. Such withdrawals showed that capital was building up in Ethereum ecosystem.

Usually, large ETH investors move it to private wallets after purchasing it on centralized exchanges (CEXs) like Binance. This results in supply on exchanges shrinking, which reduces sell pressure. Thus, these events could cause prices to rise.

The possible shift might alter, though, if this ETH returns to the exchanges. Still, it showed that the holders were very optimistic, with self-custody affirming belief in the long term. It was a positive sign, despite the market’s decline.

Ethereum News: Are Whales Betting on ETH Upgrades?

Whales appear to be betting on Ethereum’s strong fundamentals. This Ethereum news highlights their confidence in the blockchain’s long-term value. That’s due to the price’s extreme weakness, which the chain’s activity could potentially bolster.

Numerically, Ethereum reached a new peak in network activity. The chain processed about 17.3 million transactions this week. In the meantime, the median fee went down to $0.008.

This difference showed how efficient Ethereum was becoming. This suggests that the scaling upgrades were indeed effective. Moreover, rollups and sharding might be able to handle more load at a lower cost.

So, usage rose without fees following suit. This was due to the Fusaka upgrade that suggested a fee reduction. But metrics could also mean different things.

The demand for layer-2 solutions may drop as mainnet fees go down. Also, high visibility made privacy a problem since transactions were still public. So, these scalability gains could come with risks.

It also indicated that the market was adopting the upgrades, as low fees may indicate underutilization in certain areas. In general, data encouraged balanced views on the progress of the Ethereum upgrades. That said, how was price action doing?

ETH Price Prediction: Is a Reversal Coming?

The last big drop in ETH price was the 31-bar peak-to-bottom fractal. This indicated there was a possibility of more drops. This followed that price broke through key support levels. This showed that bearish momentum was strong.

However, it was approaching the bottom between $1,333 and $1,006. It aligned with the historical demand zones.

But from the look of things, the speed of the current sell-off made a quick V-shaped reversal less likely. Historical data showed that it could consolidate after such sharp drops to form a base.

Buyers defend interim support at $2,000 and reclaim broken levels. This Ethereum news suggests a relief rally could reduce the chances of deeper targets.

Upon dropping, stabilization and less volatility would be early signs of an accumulation phase in the $1,000-$1,300 zone.

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