Ethereum, the second largest cryptocurrency after Bitcoin, has gained 6% since the beginning of the day and diverged from the market. In the same time frame, BTC and other altcoins increased by 3% on average, while ETH's performance caught the attention of investors.
In this article, we will address the potential reasons behind Ethereum's rise with on-chain data.
ETH Outflow from Exchanges!
According to the latest charts shared by the on-chain analytics platform Santiment, ETH investors have been withdrawing their tokens from exchanges since the beginning of the month. Current data revealed that 210,000 ETH tokens moved out of the exchanges between 1-5 May 2023.
The vast majority of crypto analysts interpret the digital asset exits from the stock market in a positive way.
Big Whales Re-Buy!
Another chart shared by Santiment shows that large Ethereum whales are rebuying after the Shapella upgrade.
After the Shapella update, which was completed on April 12, 2023, the whales started to buy again. According to the chart, giant wallets holding between 1-100 million Ethereum have purchased 950,000 ETH since the beginning of the week.
Ethereum, which held on the support of $ 1,800 at the beginning of the week, continued to rise until today.
The bulls, who did not encounter any obstacles at the $ 1,940 resistance during the day, moved the ETH price to the $ 2,000 limit as of now. A hard break of the $ 2000 level will also be a lifeline for other altcoins.