- Whale transactions worth more than $100,000 increased significantly in March.
- This optimism may stem from the CFTC classifying ETH as a commodity.
Despite significant events like the Dencun upgrade, Ethereum [ETH] It underperformed in March, gaining just 0.79% in 30 days. The second-largest cryptocurrency faced strong resistance at $4,000 and fell to $3.500 at the time of writing.
However, even this downturn did not deter large investors from investing in the coin and continued to add Ethereum exposure to their portfolios.
Whales believe in the growth of ETH
According to AMBCrypto, which analyzed Santiment data, whale transactions worth more than $100,000 increased significantly throughout the month. These transactions led to a proliferation of small whale wallets that typically contained between 1,000 and 10,000 coins.
Source: Santiment
This nature of accumulation is known as “push buying.” This strategy involves buying assets during temporary price declines in order to profit from the possibility of future price increases.
Based on research and business acumen, this plan is typically adopted for fundamentally strong assets with long-term growth potential.
The bullish level is also reflected in increased long exposure in the derivatives market. According to AMBCrypto, which analyzed data from Highblock Capital, about 72% of all whale positions on crypto exchange Binance were bet on ETH rising.
Source: Hyblock Capital
Whales' bullish strategy appears to have been accepted by the market as a whole. According to the Fear and Greed Index, the overall atmosphere was one of “greed”. Usually, such sentiments lead to FOMO, which attracts more investors and increases buying pressure.
But what motivated the whales to become bullish on ETH?
Is it likely that spot ETF approval will improve?
There has been a lot of pessimism surrounding the approval of the EtherSpot ETF in recent weeks. Odds were falling as it became more likely that the U.S. Securities and Exchange Commission (SEC) would consider Ether a security.
Is your portfolio green? Check out our ETH Profit Calculator
However, the US derivatives market regulator, the Commodity Futures Trading Commission (CFTC), referred to ETH as a commodity in the recent KuCoin case.
This may have reignited investors' hopes that the EtherSpot ETF will eventually see the light of day. If approved, spot ETFs could do for ETH what Bitcoin has been witnessing since mid-January.
