Move over Bitcoin, whales now prefer Ethereum – Here’s why

• Prominent whales have switched from Bitcoin to Ethereum.
• Ethereum ETFs and the Dencun upgrade may have had a part to play.

In recent weeks, Bitcoin [BTC] has been the primary focus for both retail and whale investors, capturing significant attention with its soaring prices.

However, recent data suggested a shift in sentiment, as Ethereum [ETH] emerged on the radar of whale investors.

Whales switch their stance

According to data from Lookonchain, a substantial move occurred as a whale transitioned from a bullish stance on BTC to adopting a bullish position on ETH.

This strategic shift involved exchanging 1,500 ETH for 88.68 WBTC, totaling $4.58 million on the 26th of February, with the intent of shorting the ETH/BTC pair.

Following this initial maneuver, the whale executed another exchange, converting the acquired 88.68 WBTC back to 1,597 ETH, valued at $5.57 million.

This adjustment resulted in a net gain of 97 ETH, amounting to $338,000.

Source: X

This transition to Ethereum aligned with the growing anticipation around Ethereum ETF approvals and heightened excitement surrounding the Dencun upgrade.

These factors could potentially attract more interest and investment into Ethereum, positioning it as a favorable asset in the eyes of both retail and institutional investors.

However, despite this positive sentiment, Ethereum faced challenges, notably the persistently high gas fees, on its network.

These fees have been a point of concern, potentially impacting investor sentiment negatively, especially for smaller traders looking to engage in transactions.

The high fees could force users to look for lower-cost alternatives such as Solana [SOL], which may impact Ethereum in the long run.

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Looking at ETH

Despite this, gas usage on the Ethereum network remained relatively consistent over the last few days.

Examining the price movement, Ethereum was trading at $3,469.49 at the time of writing, exhibiting a growth of 1.56% in the last 24 hours.

While positive price movement was encouraging, other concerning issues emerged.

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Notably, Ethereum’s Network Growth saw a decline, indicating reduced interest from new addresses.

This may pose a challenge to Ethereum’s sustained growth, raising questions about the broader market sentiment around the altcoin.

Source: Santiment