Institutional Investors Ignite Ethereum Buying Wave, $4,000 Value Predicted Amid ETF Endorsement

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In the wake of the SEC’s recent endorsement of Spot Ethereum Exchange Traded Funds (ETFs), a wave of institutional investors has been zealously accumulating Ethereum. The buying fervor could well ignite a catalyst, shooting the value of Ethereum beyond the $4,000 mark, according to Crypto analyst Ali Martinez.

Martinez’s examination of the Ethereum landscape, disclosed in a social media proclamation, reported a startling 3% augmentation in the quantity of Ethereum addresses embracing more than 10,000 tokens in just three weeks. This mirrored a prominent trend of large investors accumulating wealth in this virtual coin.

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Earlier this year, the approval prospects of Ethereum ETFs and rapid institution-wide adoption had already served as the gasoline lighting Ethereum’s price ascension. February bore witness to the initial surge when verified whispers surfaced about the SEC’s potential green-lighting of Spot Ethereum ETF applications in the aftermath of endorsing Spot Bitcoin ETFs. This caused the price of Ethereum to leap by a staggering 83% within a month, pushing past $4,000. It marked a first since 2021. Simultaneously, May birthed decisive court rulings, escalating the chances of Spot Ethereum ETF’s approval and hurtling Ethereum’s cost above $3,000.

The approval of the Spot ETF applications by SEC meant a green flag for institutional investors to bolster their portfolios with Ethereum. Based on Glassnode data, this buying spree stretched across three weeks and drove the number of portfolios having more than 10,000 ETH token past 975, nearing the 1,000 mark. Concurrently, it showed there had been a steady uptick in the number of ETH mega-whale addresses in the previous 30 days, the recent metrics adding 15 more whale addresses.

Accumulated on-chain data reveals a stable social sentiment for ETH after an intense wave of euphoria flooded the crypto market following Spot Ethereum ETF approval. Yet, the immense withdrawal of holdings from exchanges had an interesting consequence – Ethereum’s availability on these centralized exchanges diminished. This contributed to the Ethereum balance on these platforms sinking below that of Bitcoin’s, even as Spot Bitcoin ETF wallets were busy gathering Bitcoins. Glassnode data went on to detail that presently, fewer than 10.56% of Ethereum’s entire supply was held on the main exchanges.

However, with Ethereum whales amplifying their investments, the buying pressure has reached fever pitch. This tsunami of curiosity reverberates a very bullish projection for Ethereum’s price in the upcoming months, albeit there may be sporadic short-term volatility.

As of writing, Ethereum trades at $3,527, having depreciated by 3.83% in the preceding 24 hours. Despite the amplified buying pressure being an auspicious omen, the bull investors still had a considerable journey ahead to further elevate Ethereum’s price. A key contention spot waits at the $3,700 mark, where 1.82 million addresses have stocked 1.8 million ETH.