Ethereum Whale Goes All in on ETH in Brave Move as Price Skyrockets

Ethereum, the second-largest cryptocurrency by market capitalization, has seen a surge in demand and price since February's start, touching a one-month high of $2,687 in early trading today.

According to Lookonchain, an Ethereum whale has made a brave move in accumulating $ETH since the start of February, when its price started rising from lows of $2,239.

The whale's strategy was going long on $ETH using revolving loans on the Spark platform, which allows the borrower to withdraw, refund and redraw funds as needed within a specific limit and period.

Spark is a platform that provides revolving loans. Users can deposit $ETH or other ERC-20 tokens as collateral and borrow stablecoins like USDC or $DAI at a variable interest rate.

According to Lookonchain, the aforementioned whale has withdrawn 39,900 $ETH worth $99.5 million from exchanges like Binance, Bybit, OKEx and Bitfinex since Feb. 1 at an average price of $2,492, and borrowed 56.8 million $DAI from Spark.

The whale's goal is clearly to increase their $ETH holdings and profits while paying little interest on the loans.

Whale's bullish stance is evident

The above-mentioned strategy may seem risky given the volatility of the crypto market; however, the whale's bullish stance is evident.

By all indications, the whale is essentially betting that the price of $ETH will rise more than the interest rate of the loans and that the collateral value will not fall below the liquidation threshold. If the price of $ETH falls significantly, the whale may lose their collateral and suffer a substantial loss.

On Monday, the Ethereum ecosystem and layer-2 tokens such as LDO, ARB and MNT soared after Franklin Templeton filed for a spot Ethereum ETF.

Growth in alternative cryptocurrencies, or "altcoins," appears to have accompanied Bitcoin's surge, which reached $50,000 for the first time since late 2021. At the time of writing, $ETH was up 8% in the last 24 hours to $2,678.