Recent data indicates a growing preference for Ethereum (ETH) over Bitcoin (BTC) among large crypto investors, often referred to as "whales." On-chain analysis reveals significant activity, including one whale swapping substantial amounts of BTC for ETH in multiple transactions.
Whale Accumulation Trends
This increased appetite for ETH among whales coincides with Ethereum's growing market share, while Bitcoin struggles to maintain its dominance above 60%. Data from major order books demonstrate consistent ETH buying activity by whales on exchanges like Coinbase and OKX during recent weekends. In the past three weeks alone, net spot market purchases by whales have totaled approximately $17 million.
Furthermore, these large investors have traded over $3.3 billion in ETH futures contracts on OKX and Binance, signaling rising confidence in Ethereum's price potential. This optimistic sentiment fueled a significant ETH price surge earlier in the week, with the token gaining around 13% before retracing much of those gains.
Ethereum's Price Outlook
Ethereum's price performance relative to Bitcoin since the November lows underscores the increasing favor shown to the native coin of Ethereum. Currently, ETH is trading around $3,075, reflecting a more than 16% increase from its November low. In contrast, Bitcoin has only risen by a little over 9% from its November low.
This outperformance of ETH aligns with a continuous decline in ETH reserves held on exchanges. Between December 9th and December 14th, roughly 248,711 ETH were withdrawn from exchanges, valued at over $766 million at current prices.
| Date Range | ETH Withdrawn | Equivalent Value (USD) |
|---|---|---|
| Dec 9 - Dec 14 | 248,711 | 766 Million+ |
The dwindling ETH reserves on exchanges suggest investors are transferring their holdings to personal wallets, a move often associated with long-term accumulation strategies. The combination of shrinking ETH reserves and positive whale sentiment has led to market expectations of an impending supply squeeze for ETH.
After reaching a peak of $3,477 recently, ETH could potentially surpass $3,500 if demand remains strong and exchange outflows continue, assuming favorable macroeconomic conditions. However, the downward price trend in the latter half of the week may reflect concerns regarding the upcoming interest rate decision by the Bank of Japan (BOJ).
Ethereum's Stablecoin Dominance
The stablecoin market has witnessed substantial growth, continuing the upward trend from the 2021 bull run, with regulatory developments further accelerating adoption. Ethereum is capitalizing on this stablecoin boom due to its leading market position. The total value of stablecoins on Ethereum has surged from approximately $97.9 million on December 14, 2021, to over $171.8 billion today.
Ethereum maintains a significant lead over its competitors. Tron ranks second with around $80.4 billion in stablecoins within its ecosystem, followed by Solana with $15.3 billion. Since the beginning of 2025, the number of stablecoins on Ethereum has increased by over $54 billion, solidifying its dominant position and its ability to capitalize on growth opportunities as the market enters a phase of widespread stablecoin adoption globally.
| Blockchain | Stablecoin Value (USD) |
|---|---|
| Ethereum | 171.8 Billion+ |
| Tron | 80.4 Billion |
| Solana | 15.3 Billion |
Analysts caution that ETH could potentially decline towards $2,500.
FAQs
Why are crypto whales increasingly favoring Ethereum over Bitcoin?
Recent data shows whales are accumulating ETH due to its growing market share, positive price outlook, and Ethereum's dominance in the stablecoin market. This trend is reflected in significant ETH purchases and futures trading activity by large investors.
What does the decrease in Ethereum reserves on exchanges indicate?
The declining ETH reserves on exchanges suggest investors are moving their ETH holdings to personal wallets for long-term accumulation. This, combined with positive whale sentiment, is fueling expectations of a potential ETH supply squeeze.
How has Ethereum's price performed compared to Bitcoin recently?
Since the November lows, Ethereum has outperformed Bitcoin, rising by over 16% compared to Bitcoin's increase of just over 9%. Currently, ETH is trading around $3,075, with potential to surpass $3,500 if demand remains strong.
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