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Ethereum Whale’s $145M Buy-Up Preceded Vitalik Buterin’s Bug Alert, 52-Week Rally

Last Updated February 19, 2024 5:13 PM
Shraddha Sharma
Last Updated February 19, 2024 5:13 PM
Key Takeaways
  • An Ethereum whale executed strategic transactions, amassing 52,759 ETH worth $145.4M
  • ETH Whale capitalized ahead of a significant price rally that took Ethereum to a 52-week high. 
  • Ethereum co-founder Vitalik Buterin raised concerns about bug risks in Ethereum code and the importance of AI in detection.

Ethereum reached a 52-week high on February 19, buoyed by positive market sentiment and comments from Buterin. The anticipation of the upcoming Dencun upgrade, set to enhance network efficiency and reduce transaction costs of Ethereum, also adds positively to the market.

With that, an Ethereum whale successfully navigated the volatile crypto trajectory, securing substantial profits. But, the capitalization came before Ethereum co-founder Vitalik Buterin expressed concerns over potential vulnerabilities in the blockchain’s code.

Ethereum Whale’s Strategic Accumulation

An analysis by Lookonchain  revealed that an Ethereum whale profitably timed the market by withdrawing 100 million USDT from Binance and converting 60 million USDT into 21,353 ETH at $2,810 each.

The accumulation was part of a larger strategy that saw the whale acquire a total of 52,759 ETH, valued at approximately $145.4 million, since February 8.

In the last three months, the second-largest crypto by market capitalization has been on a climb. Based on Token Terminal data, the 180-day period added close to 80% to Ethereum’s price. As Ethereum inched closer to $3000, it managed to reach an annual high. Several crypto analysts now anticipate  that the next level of $3500 is not far, considering the price trajectory.

ETH USD 1-day chart | Source: TradingView

In terms of market cap, ETH dominates 16% of the market at press time. Notably, IntoTheBlock research places Ethereum’s concentration by large holders at 48%.

Vitalik Buterin’s Security Concerns Ahead of Dencun Upgrade

Ethereum surpassed its 52-week high after Vitalik Buterin, the blockchain’s co-founder, voiced concerns about the platform’s susceptibility to bugs. In a post on X, he said, “Right now ethereum’s biggest technical risk probably is bugs in code, and anything that could significantly change the game on that would be amazing.”

 Since Buterin suggested AI-assisted formal verification as a potential solution to Ethereum’s technical risk, the market took it positively. Buterin’s comments introduced a moment of volatility in Ethereum’s otherwise bullish trajectory.

Within hours, Ethereum’s price stabilized and continued its upward trend ahead of the Dencun upgrade. Dencun promises to enhance the network’s throughput and reduce transaction costs, the next major upgrade after Shanghai. Ethereum will upgrade its executive layer through the Cancun upgrade before Dencun can be a consensus layer upgrade. Meanwhile, Shanghai was considered a major upgrade because it allowed the withdrawal of staked ETH.

Dencun is expected to take place by mid-March. At the same time, CoinGlass data suggests increased investor interest as Open Interest in the derivatives market rose by almost 6% at the start of the week.

Ethereum on a Positive Run

The move by Ethereum Whale, combined with Vitalik Buterin’s commentary on the blockchain’s improvements, presents an optimistic view.

As Ethereum edges closer to a significant upgrade that promises to address longstanding issues and improve overall network efficiency, investor interest is peaking. The next few months will be crucial for the blockchain due to broader market dynamics and pending regulatory decisions.

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