Key Takeaways
Whales are making bullish moves, including opening large long positions and transferring assets into private wallets. Depositing addresses have fallen to just 16,000, adding to the upward pressure.
As Ethereum [ETH] edges closer to reclaiming the $4,000 level, investors are placing buy orders on the asset in anticipation of a potential rally.
Whale activity in particular supports this narrative. In fact, a supply squeeze may be near as ETH deposits into exchanges and overall exchange reserves continue to decline.
Whale interest surges in ETH, again!
There has been a notable resurgence in whale activity over the past 24 hours.
Whales—addresses controlling significant liquidity—often influence market direction through their large trades.
One such whale, Aguila Trade, recently closed a short position on ETH after incurring over $8 million in losses and subsequently opened a long position.
According to HyperDash, the new long position is worth more than $128 million, and currently holds an unrealized profit of $631,000 at press time.
Source: Lookonchain
Similarly, LookonChain reported that another whale withdrew 13,244 ETH (worth $49.52 million) from the crypto exchange OKX and moved the funds into private wallets.
Such transfers usually signal a long-term bullish outlook, as investors show intent to hold rather than sell in the short term.
Spot and on-chain activity support bullish sentiment
Significant inflows have been recorded in both the spot market and on-chain.
According to CoinGlass’ Spot Exchange Netflow data, investors have resisted back-to-back sell-offs from the previous two days.
These investors have now accumulated over $70 million worth of ETH and moved it into private wallets, underscoring a broader, long-term bullish market sentiment.
Source: CoinGlass
Artemis also reports a notable inflow of liquidity from other blockchains into Ethereum.
The Bridge Netflow from external ecosystems reached $4 million, indicating capital rotation into ETH as investors likely anticipate a strong rally.
In fact, activities across exchanges suggests further potential for growth, while signs of an impending supply squeeze continue to build.
Exchange reserves drop as deposits Slow
The amount of ETH held on exchanges has declined significantly. While exchange reserves had increased in previous weeks, they have now resumed a downward trend.
Source: CryptoQuant
At the time of writing, ETH availability on exchanges sits at 19.7 million—suggesting that investors are pulling their assets off exchanges, reducing the likelihood of near-term sell-offs.
In fact, the number of depositing addresses has dropped sharply, reaching a low last seen on the 7th of July.
With only 16,000 addresses currently depositing ETH, the data points to decreased selling activity, especially after ETH’s 54% rally over the past four weeks.
Source: CryptoQuant
If this trend continues, the reduction in available ETH could trigger a supply squeeze, a scenario where demand outpaces the limited available supply, potentially fueling further price increases.