$392.5 Million ETH Long: A Bitcoin Veteran Makes a Major Bet on Ethereum

A prominent Bitcoin investor is placing a significant long bet on Ethereum, the second-largest cryptocurrency by market capitalization. This article delves into the details of the investor's increasing position and the broader implications for the Ethereum market.

Key Takeaways

A veteran Bitcoin holder increases his long position in Ethereum to 120,094 ETH.
The current liquidation price for this position is $2,234.69, well below the current ETH price of $3,193.
Major ETH holders, such as Tom Lee's Bitmine, are also buying significant amounts of ETH.
Ethereum Taker Flows on Binance show signs of recovery with improved Net Taker Volume.
Key support levels for ETH are identified at $3,150 and $2,800.
Recent upgrades to Ethereum's network set the stage for growth and increased capacity.

Bitcoin Veteran’s Ethereum Bet

A Closer Look at the ETH Long Position

According to Lookonchain, a well-known Bitcoin holder has significantly increased his long position on Ethereum, the second-largest cryptocurrency by market capitalization. This investor, identified as BitcoinOG (1011short), has ramped up his investment continuously, now holding 120,094 ETH. His liquidation price stands at $2,234.69, which is significantly lower than the current price of ETH, at $3,193.

This activity aligns with a recent trend amongst large Ethereum holders who are accumulating more assets. In the last six hours, Tom Lee's Bitmine purchased an additional 33,504 ETH, valued at approximately $112.06 million.

Market Observations

Data from CryptoQuant reveals that Ethereum Taker Flows on Binance are beginning to recover. This indicates a resurgence of taker buyers, with the Net Taker Volume—which tracks the balance of aggressive buying versus selling—sitting at -$138 million. While still negative, this marks a notable improvement from the -$500 million recorded in late October. The upward movement in Net Taker Volume suggests a potential for increased price momentum in the near future.

As of this report, ETH is trading 3.33% lower over the past 24 hours, at $3,203. This decline coincides with broader market movements, as many investors took profits following the Federal Reserve's recent interest rate decisions. However, the signs of a shift in Taker activity indicate that buyer-driven orders are starting to gain traction.

Support Levels and Network Developments

Analysts have identified two significant support levels for Ethereum (ETH): $3,150, where 2.8 million tokens are stored, and $2,800, with 3.6 million tokens accumulated.

Recent network upgrades, specifically the Fusaka update, lay the groundwork for continued growth. Among these upgrades, PeerDAS (EIP-7594) enhances network capabilities by increasing data throughput up to 8 times, which lowers the cost of blob fees and provides more space for growth.

Additionally, the BPO-1 upgrade, activated yesterday, expands blob capacity to 15 per block and increases space on Ethereum for Layer 2 solutions without requiring a hard fork. The BPO-2 upgrade, which will further boost capacity, is expected to launch in January.

By understanding these developments, investors and newcomers alike can gain insights into the evolving landscape of Ethereum and its potential for growth.