Despite having experienced a large fall in recent months, it is predicted that the ongoing Ethereum (ETH) network development will favor the asset’s price in the future.
By purchasing ETH futures, investors demonstrate that they are prepared to profit from a potential Ethereum surge.
According to data from cryptocurrency monitoring platform Crypto Quant released by Web3 on-chain researcher Kate Young Ju through Twitter on July 20, on-chain activity suggests that an Ethereum whale bought ETH futures contracts worth $1.7 billion within an hour.
Based on market orders, the acquisition represents the biggest hourly volume for Ethereum future contracts in the previous seven months. Notably, the value of Ethereum futures is derived from Ethereum and refers to contracts to buy or sell ether at a later time.
Increasing Whale Action on Ethereum
The action of the Ethereum whales shows that the asset’s recent rebound is gaining steam and may plan to continue. At the time of publication, the counter was up around 48% over the previous seven days and was trading at $1,500. Compared to Ethereum’s rival Bitcoin (BTC), which saw a surge of 19 percent within the same period, the weekly gains have been astronomical.
Notably, the purchase of the Ethereum futures contract supports the recent increase in whale behavior. Ethereum whales have usually escalated their hoarding behavior after a modest start in mid-to-late June, reaching over 20% as of July 18.
The Merge Upgrade’s Effects
The Merge upgrade for the decentralized finance (DeFi) cryptocurrency’s ultimate transition from the resource-intensive proof-of-work (PoW) mechanism to the Proof-of-stake (PoS) protocol is scheduled for late September. Following the upgrade, Ethereum has begun to rebound in line with the general market trend.
The Merge update will likely cause the second-ranked cryptocurrency to trade above $1,700 by the end of 2022.
As miners move away from Ethereum due to the imminent upgrade, activity has also been seen on alternative assets like Ethereum Classic (ETC). Following the upgrade update, ETC increased by about 50% weekly as the network prepared to support the PoW miners and the ETH hash rate.