A notable Ethereum whale has been active in the market, making significant purchases as the cryptocurrency landscape shows signs of recovery from substantial liquidations earlier in the month. On Tuesday, a major wallet acquired Ethereum worth $55 million from BitGo, followed by an additional $13 million purchase on Wednesday from Binance. This buying trend aligns with an 8% increase in Ethereum's value, alongside broader market gains seen in Bitcoin and Solana following the losses in early December.
The derivatives market is also signaling a renewed interest in leveraged long positions. Data indicates an increase in taker buy volume and a rise in perpetual CVD alongside open interest. This suggests a growing appetite for aggressive market buying. Ethereum’s largest stakeholders have become more active as the market begins to recover from the over $600 million in long liquidations that occurred on Monday.
According to Arkham Intelligence, one large holder purchased 18,345 ETH, approximately valued at $55 million, from BitGo. Another significant transaction involved the purchase of 4,597 ETH, worth about $13 million, from Binance on Wednesday morning. Additionally, a separate large acquisition of 30,278 ETH, valued at $91.16 million, was made from Kraken just three hours ago. These transactions have coincided with a market rebound that has elevated the values of Bitcoin, Solana, and other digital assets. Ethereum has risen by more than 8% in the past 24 hours, trading at $3,015 according to CoinGecko data. Bitcoin has seen a 7% increase, while Solana's value has surged by over 10%.
Further optimism for continued price increases is fueled by a spike in taker buy volume, representing $148.7 million in buy orders filled by takers in perpetual swaps across all exchanges on Tuesday. This demand is considered a strong indication of aggressive market buying, as noted by Maarten Regterschot, a verified analyst at CryptoQuant. In addition, Velo data reveals an uptick in futures cumulative volume delta compared to spot cumulative volume delta. When perpetual CVD and open interest trend upwards, it typically indicates investors are opening new long positions.
Stephen Gregory, founder of the crypto trading platform Vtrader, commented on the situation, suggesting that if more DATs trade below their mNAV, institutional investors may acquire Ethereum at discounted rates. He expressed confidence in the market's recovery, stating, “I think the correction has run its course, and the macro tailwinds will push Ethereum back up.”