Ethereum whales and sharks have increased their ETH holdings, scooping almost 2% of the current supply in a span of three weeks. According to data analytics firm Santiment, this cohort of investors’ activities is not ordinary.
Two years back, the same addresses accumulated 2.1% of available supply in five weeks and triggered a price upswing of Ethereum by over 50%.
Active shark & whale addresses continue accumulating with prices less than a quarter of their All-Time High levels a year ago. In Oct/Nov 2020, these 100 to 100k ETH addresses assisted in pushing $ETH to a +50% price rise over 5 weeks.
If history repeats again, we might see a potential rebound from the current state of doldrums Ethereum is at, Santiment observed. Normally, price spikes on the upside are preceded by an accumulation tendency, but this has not been the case for ETH.
The world’s second-largest cryptocurrency by market capitalization is currently languishing less than a quarter of its previous peak levels a year ago.
Another leading data intelligence platform Glassnode noted that Ethereum balances on exchanges also hit a four-year low on 18 Nov.
As the crypto market continues to decline, the collapse of the crypto lender FTX occurred after the trading platform secretly invested user funds and failed to honor withdrawals during a bank run.
This has exacerbated the situation, pushing the whales’ and sharks’ wallets to continue accumulating the crypto asset.
For instance, the largest whales among them have added over $1 billion worth of the second-largest cryptocurrency by market capitalization in a single day.
Ethereum Could Witness A Price Rebound; Here’s Why
Additionally, this could be a sign of a wave of centralized exchanges losing trust after the FTX meltdown last week. Investors are increasingly choosing to keep their funds off the exchanges in this regard.
In a previous analysis, Santiment claimed that even though the cryptocurrency market’s overall sentiment is gloomy, things might possibly improve for the world of digital assets.
“The crowd FUD [fear, uncertainty, doubt] is real as markets wrap up the work week. Conversations relating to current market conditions on Twitter, Reddit, Discord, and Telegram indicate a major bearish bias. This historically increases the probability of future price rises.”
At the time of writing this post, ETH is exchanging hands at $1202 and is up 3.33% in the last 24 hours.