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- Whale transactions worth over $100,000 rose significantly in March.<\/em><\/li>\n
- The optimism could be flowing from CFTC labelling ETH as a commodity.<\/i><\/li>\n<\/ul>\n
Despite critical events like the Dencun Upgrade<\/a>, Ethereum [ETH]<\/a> underperformed in March, with just a marginal increase of 0.79% over the 30-day period. The second-largest cryptocurrency faced strong resistance at the $4,000 mark, dropping to $3.500 as of this writing.<\/p>\n
But the slump didn\u2019t deter large investors of the coin, who continued to add Ethereum exposure to their portfolios.<\/p>\n
Whales trust ETH to go big<\/h4>\n
According to AMBCrypto\u2019s analysis of Santiment\u2019s data, whale transactions worth over $100,000 rose significantly throughout the month. These transactions resulted in a sharp increase in small whale wallets which typically hold between 1,000 \u2013 10,000 coins.<\/p>\n
![\"Ethereum](\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/03\/ethereum-whales-accumulation.png\")
<\/a><\/p>\nSource: Santiment<\/p>\n<\/div>\n
This nature of accumulation is known as \u201cbuy the dip.\u201d The strategy involves buying assets during temporary price drops to benefit from potential future price increases.<\/p>\n
Driven by research and business acumen, this plan is usually adopted for fundamentally-strong assets with long-term growth potential.<\/p>\n
The level of bullishness was also reflected in the increasing long exposure in the derivatives markets. As per AMBCrypto\u2019s analysis of Hyblock Capital\u2019s data, about 72% of total whale positions on crypto exchange Binance were betting on ETH to rise.<\/p>\n
![\"Ethereum](\"image\/svg+xml,%3Csvg%20xmlns=\")
![\"Ethereum](\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/03\/ethereum-whale-position.png\")
<\/a><\/p>\nSource: Hyblock Capital<\/p>\n<\/div>\n
Whales\u2019 bullish strategy seemed to have been picked up by the broader market. The general mood was one of \u201cGreed\u201d as per the Fear and Greed Index. Typically, such sentiments lead to FOMO, drawing in more investors and adding to the buying pressure.<\/p>\n
But what was motivating whales to be bullish on ETH?<\/p>\n
Chances of spot ETF approval improving?<\/h4>\n
In recent weeks, a lot of pessimism<\/a> had set in surrounding the approval of Ether spot ETFs. The odds were getting lowered due to increasing possibility of the U.S. Securities and Exchange Commission (SEC) deeming Ether as a security.<\/p>\n
\nIs your portfolio green? Check out the\u00a0ETH Profit Calculator<\/a><\/p>\n
\nHowever, U.S. derivatives market regulator, Commodities Futures Trading Commission (CFTC) referred<\/a> ETH as a commodity in the recent KuCoin lawsuit.<\/p>\n
This could have rekindled investors\u2019 hopes that an Ether spot ETF would eventually see the light of day. If approved, spot ETFs have the potential to do for ETH what Bitcoin has been witnessing since mid-January.<\/p>\n
\u00a0<\/p>\n
\n - The optimism could be flowing from CFTC labelling ETH as a commodity.<\/i><\/li>\n<\/ul>\n