First Coin

Big Investors Help Push Ethereum’s Price to a 3-Week High

Why is Ethereum’s Price Going Up?

The price of Ethereum‘s currency, called Ether (ETH), recently went up to $3,230. This is the highest its price has been in nearly three weeks. There are two main reasons for this: big investors are buying a lot of it, and a new technical update for Ethereum was a success.

Big Investors Are Buying More ETH

A company that studies crypto data, called Santiment, noticed that large crypto accounts are buying more and more ETH. They call these accounts “shark wallets.” These are accounts that hold between 1,000 and 10,000 ETH.

According to Santiment, when these “shark wallets” start buying, it has often been a key signal that the price of Ether might go up. At the same time, the Ethereum network is growing. In just one day, 190,000 new digital wallets were created, which shows more people are starting to use it.

A Successful Ethereum Update

This price increase also happened right after a big technical update to Ethereum, called the Fusaka upgrade, went smoothly.

This update is an important step in making Ethereum better. Its goals are:

“Fusaka went well,” said Ethereum developer Terence Tsao. He added that everything is working together like a “well-oiled machine.”

Ryan Sean Adams from Bankless, a crypto media company, was also excited. “I haven’t seen builder momentum this strong since The Merge in 2022,” he said. The Merge was another huge, successful update for Ethereum.

What Are Experts and Big Buyers Doing?

The Ethereum network has been very busy. An observer named Sam Altcoin noted that on December 3rd, the network had a record amount of activity.

An analyst named Ted Pillows is watching the ETH/BTC ratio. This is a way to compare the price of Ethereum to the price of Bitcoin. He said that if this ratio passes a certain level that traders watch (called the 50-week exponential moving average), it could be a very good sign for Ethereum and other similar cryptocurrencies.

Meanwhile, a well-known investor named Tom Lee is regularly buying more ETH. A company called Arkham Intelligence, which tracks crypto transactions, reported that another $150 million worth of ETH was just bought in a way that matches his company BitMine‘s previous purchases from exchanges like Kraken and BitGo.

This means BitMine has bought a large amount of ETH three times this week. The company now owns at least 3.73 million ETH, which is worth almost $12 billion.

What’s Next for Ether’s Price?

On Thursday, Ether’s price hit $3,230 before settling around $3,200.

The price has recovered by 16% since it dropped to $2,740 earlier this week during a market shake-up (sometimes called a leverage flush). For comparison, Bitcoin’s price has only recovered by 10% in the same time.

However, it’s good to remember that Ether’s price is still 35% lower than its all-time highest price.