Santiment, a prominent cryptocurrency analytics firm, recently posted a tweet shedding light on the wealth distribution within the Ethereum (ETH) network. As of now, Ethereum’s market value is teetering around the $1,570 mark, with 8.51% of the total ETH supply residing on various exchanges. However, the concentration of wealth among the top wallet holders is more fascinating.
The 10 largest non-exchange addresses collectively control a staggering 39.22 million ETH. These powerful Ethereum holders have been amassing wealth as the market fluctuates. This accumulation trend underscores their confidence in the digital asset’s long-term potential.
On October 9th, analyst Ali reported that since February 2023, Ethereum whales have taken advantage of the surging ETH prices, offloading or redistributing over 5 million ETH, equivalent to approximately $8.5 billion. This ongoing trend of selling ETH continues, and there are no signs of a shift towards accumulation at the moment.
Regarding the current price, Ali emphasized that it is hovering above a critical demand zone. Traders and investors are advised to monitor the situation, as a daily close below $1,530 could signal a significant correction for ETH.
Ethereum’s Comparative Performance
While Ethereum has maintained its status as a leading altcoin, Benjamin Cowen, a respected figure in the crypto analytical community, raises concerns regarding Ethereum’s performance when compared to Bitcoin. His analysis revolves around the valuation of ETH/BTC, which has been experiencing a downward trend.
He highlights that this resembles a pattern observed in 2019 when Ethereum’s value relative to Bitcoin plummeted by approximately 49%. Looking towards 2023, we find that the ETH/BTC valuation has already fallen by 20.56%, potentially indicating a more substantial decline if historical patterns persist.
Despite his concerns, Cowen remains cautious in his predictions, acknowledging that the unforeseeable consequences of The Merge could reshape Ethereum’s trajectory. The deflationary element introduced by The Merge could be a wildcard that alters the course of Ethereum, making its future even more uncertain.
Nonetheless, while the similarities between 2019 and 2023 are worrisome, the influence of “The Merge” and other updates suggest that Ethereum’s journey in 2023 may hold exciting surprises and unexpected twists for the Ethereum community.
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