Ethereum (ETH) has experienced a significant surge in value, increasing by almost 20% over the past month ¹. This substantial growth can be attributed to the market's anticipation of Ethereum ETFs being introduced in the United States. Despite an initially underwhelming response following the approval, the cryptocurrency's movement towards the $4,000 mark has been deemed crucial and noteworthy.

Notably, the volume of Ether entering exchanges has reached its highest point since January, with a net inflow of 140.66k ETH on May 26th ¹. This marks the highest net deposits in over four months, indicating a significant selling activity. According to data compiled by IntoTheBlock, such substantial inflows to exchanges typically signify individuals securing profits or reacting to fear, uncertainty, and doubt (FUD).

The recent price gains have led to profit-taking by investors ¹. A "smart money" investor sold 3,025 ETH for 11.8 million DAI at an ETH price of $3,904, resulting in a profit of approximately $1.11 million. This investor had previously accumulated 17,770 ETH between 2017 and 2020 at an average cost of $182 per ETH. On March 28, 2024, they sold this ETH at a price of $3,503 per token, generating a profit of around $59 million.

Another notable activity involved an Ethereum whale withdrawing 2,856 ETH, valued at $11 million, from Kraken ¹. This whale had previously accumulated 35,176 ETH from the same exchange at an average price of $428 per ETH between October 2018 and November 2022. On October 20, 2023, the whale deposited all this ETH back into Kraken when the price was $1,610 per ETH, realizing a profit of approximately $41.6 million. However, this sell-off was mistimed, as the crypto market rallied shortly after. If the whale had held onto their ETH, their profit would now be around $122 million.

In conclusion, Ethereum's recent growth, driven by market expectations and profit-taking by investors, highlights the dynamic nature of the cryptocurrency market. As the market continues to evolve, it is crucial to stay informed about the latest developments and trends to make informed decisions.