Ethereum [ETH] has managed to reverse some losses after the flash crash of September 7. It was now up by almost 5% over the past day. The renewed interest in the crypto-asset can be attributed to the whales accumulating in the backdrop of a massive plunge.
As a matter of fact, the on-chain data provider Santiment observed that the ten largest ETH whale addresses have skyrocketed in supply held in the period of the last 15 weeks. Collectively, these addresses now hold more than 21% of the crypto-asset’s total circulating supply. With this, the amount of ETH stored in these cold wallets has increased to a 51-month all-time high.
Santiment’s tweet regarding the same read,
“Ethereum is charging back, making a modest rebound thus far to $3,537. The top 10 largest whale addresses have notably skyrocketed in supply held over the past 15 weeks, now owning 21.38% of all ETH, the largest amount by them in 51 months.”
Bullish on Ethereum
Ethereum’s failure to advance and hold its fort above $4,000 may have drawn aggressive profit-booking from the short-term traders. But the latest accumulation trend depicted a positive picture for the altcoin that shed double-digit losses during the heightened sell-off earlier this week.
Many attempted to capitalize on the market-wide oversold bounce. With ETH’s rising dominance, investors are now betting on the largest altcoin as medium-term price movement does not look promising but rather bleak for Bitcoin.
Market participants aren’t the only ones who are bullish on Etheruem. Standard Chartered’s global research team compared the crypto-asset to a “financial market,” enabling lending, insurance, and exchanges and stated,
“In other words, while potential returns may be greater for ethereum than for bitcoin, risks are also higher,” said the bank’s team, adding “the current price reflects both the relative complexity of ethereum [versus bitcoin] and the uncertainty around ethereum’s development.”
The popular bank also expects Ethereum to profit from the 2.0 upgrade that started last year and is designed to enhance scalability, improve functionality make it more efficient.
Besides, Ethereum whales had reportedly moved over $1 billion in ETH across 21 separate transactions this week alone as the entire market severe correction. As revealed by the crypto tracker Whale Alert, an unknown wallet sent cryptocurrency exchange Binance a massive 99,990 ETH on September 7, which totalled more than $343 million, the largest of the tracked transactions.