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Ethereum rebounded above $1,260 for the first time in three weeks, as whale transactions in the altcoin accelerated.
Large wallet investors are interested in scooping up Ethereum as altcoins begin their recovery in 2023. Users are likely to prefer liquid staking as soon as they have completed their withdrawal from Ethereum’s staking contract post the Shanghai hard fork.
Ethereum price wiped out its recent losses and rebounded above the $1,260 level. Large wallet investors on the altcoin’s network started scooping up ETH tokens through the December 16 local bottom in the Ethereum price chart.
Ethereum network’s large wallet investors bought the recent dip in the altcoin’s price. On December 16, Ethereum hit a local price bottom at $1,168. While Bitcoin price remained largely unchanged in the first week of January, second-largest crypto by market capitalization bounced back above the $1,260.
There have been 611 ETH transactions exceeding $100,000. Higher whale activity, in terms of accumulation, is synonymous with a rally in the altcoin.
Ethereum developers are tackling the most pressing issue in the ETH holder community, unstaking tokens staked in the December 2020 contract. Developers recently prioritized token unlock over other updates in the ecosystem and lined it up post the Shanghai hard fork.
Open interest in Ethereum has grown consistently for two weeks now, suggesting that the demand in the derivatives market is recovering. On-chain indicators reveal that the market is favoring the bulls.
Ethereum’s exchange reserves have increased steadily over the last two weeks. This could imply a rise in selling pressure on the altcoin. A surge in exchange reserves is typically associated with a drop in the altcoin’s price. Interestingly, on-chain data revealed that institutional investors are trimming their Ethereum balances.
