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Is Ethereum Poised For A Price Upswing As Whales & Sharks Scoop Up ETH?

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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.

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Is Ethereum Poised For A Price Upswing As Whales & Sharks Scoop Up ETH? 2

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.

Solana’s Price Might Rebound Despite Short Selling; Here’s Why

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Solana rallied by over 13% [at press time] in the last 24 hours as investors continue to short the asset in significant numbers. But based on its overall performance, the token’s value remained in a downtrend.

A report by data analytical platform Santiment noted that SOL’s price dropped over 60% in a fortnight amidst massive shorting on Binance and perpetual trading platform DyDx.

In trading, Shorting signifies the act of selling the cryptocurrency in the hope that it falls in value making it easier to buy back at a lower price. Traders can then profit from the difference in market price.

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Solana's Price Might Rebound Despite Short Selling; Here's Why 4

The above information suggests that despite Solana’s price returning to 9% in the last 15 hours, the majority of investors are still banking on the asset’s price to fall further.

Ideally, in such scenarios, prices tend to decline but according to Santiment the ongoing FUD in the aftermath of the FTX collapse might see more price rebound.

There are not a lot of big Solana believers, even as its price bottomed out at $11.02 and rebounded to $12.70 over the past 15 hours. This FUD could cause more rebounding until traders slow down their nearly unanimous bets against SOL‘s price.

Recently, CoinShares, a digital asset investment management released a report revealing that investors cashed out $6 million in altcoins last week. These assets were mostly Solana, XRP, Binance, and Polygon “likely being a direct result of the ongoing fallout from the FTX collapse.”

Once known as the “Ethereum Killer,” SOL started trading in 2022 at $178, with a market value of $55 billion in January 2022.

Solana is Down By Over 90% In A Year

But then came “crypto winter” and the bankruptcy of cryptocurrency exchange FTX which nearly annihilated SOL price which is currently down by almost 93% over the year, trading at $13 with a $5.2 billion market value.

The demise of FTX marked the onset of the most recent decline in Solana. The blockchain Foundation’s exposure to the failing exchange came to light on November 14, days after FTX filed for Chapter 11 bankruptcy protection.

“This is less than 1% of SOL Foundation’s cash or cash equivalents and as such, the impact on Solana Foundation operations is negligible,” the Solana Foundation asserted in a post.

However, according to Forbes and the Financial Times, FTX held $982 million worth of SOL on November 10 at the time of its collapse.

Bitcoin Headed For More Panic Selling; Here’s Why

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Bitcoin [BTC] might see more signs of crowd capitulation as the world’s dominant token plunged to a new low of $15k for the first time in 2 years, Santiment observed.

The token’s address activity spiked to its highest level in over 6 months. The report cited the ongoing FUD and the diminishing trust in exchanges that have led to the preference for self-custody.

A week ago, a report by Glassnode shed light on this behavior revealing how BTC investors have been gradually moving their holdings to self-custody solutions following the collapse of the world’s second-largest crypto exchange FTX.

The analytical platform reported that Bitcoin exchange outflows had reached close to historic levels of 106,000 BTC per month in a tweet on November 13.

It was also mentioned that this had only occurred three other times, in April 2022, November 2020, and June/July 2022. On November 9, there were roughly 90,000 Bitcoin wallets receiving the asset.

Exchange outflows typically indicate a bullish sign that BTC is being held for the long run. In this instance, though, it seems to be the outcome of waning trust in centralized crypto exchanges.

As Glassnode noted, “positive balance changes across all wallet cohorts, from shrimp to whales” have been brought about by outflows.

“The failure of FTX has created a very distinct change in Bitcoin holder behavior across all cohorts.” 

On the other hand, the president of El Salvador, Nayib Bukele, and founder of Tron cryptocurrency Justin Sun have announced to accumulate bitcoin at a pace of 1 BTC per day.

Bitcoin: “Buy The Dip” Reverberates Across Crypto Biggies

Founder of TRON blockchain Justin Sun echoed Buklele’s plan to purchase Bitcoin every day. The developments would infuse hope into the crypto industry, which has been plagued by the FUD bug.

Sun’s Tron DAO Reserve, a community-driven body that supports development on the Tron network, has bought millions in Bitcoin [BTC], Tron’s native token TRX, and tether [USDT] as collateral for its dollar-pegged stablecoin USDD.

Many prominent figures, like DOGE supporter Elon Musk, former whistleblower turned crypto advocate Edward Snowden, and trading analysts like Stockmoney Lizards, are now bullish on the biggest cryptocurrency, TronWeekly reported.

Chainlink High On Surge, Shoots Upto $9.20

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Chainlink [LINK], which was seen approaching the $10 mark as the crypto market was observed falling into the Red Sea amidst the US midterm elections. While some assets were able to record positive growth, a few others were rapidly losing value. LINK, however, was one of the former.

After a brief respite in late October, the overall cryptocurrency markets have plunged once more. In October, Ethereum (ETH) surpassed $1600, and Bitcoin (BTC) reached a new high of $21,000. The rally, nevertheless, did not go on for very long. At the time of publication, BTC had been down 5.4% in the previous day, trading at $19,707.55, while ETH had dropped 7.2% in the same time period, closing at $1,473.05. In addition, the value of all cryptocurrencies decreased by 5.5% in just 24 hours, to $1.02 trillion.

The alternative currency managed to soar to a high of $9.20 earlier today. This was significant because this level has already been attained in August 2022. As a result, the community searched widely for this three-month peak.

Santiment, a well-known on-chain analytics platform, pointed out that Chainlink’s most recent action was motivated by increasing network activity.

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Santiment tweeted,

“#Chainlink spiked all the way above $9.20 for the first time since August 13th, a ~3-month high despite very volatile markets. This rise has been supported by the largest amount of active $LINK addresses in 5 weeks, and traders are longing aggressively.”

Chainlink To Hit $10 Mark?

Chainlink experienced a small correction after rising to a high of $9.20, which sent the asset back down to $8.39 as of the time of publication. LINK’s daily price movement was positive 2.56 percent despite this. This is significant because the rest of the market was suffering significant losses.

After the correction that the asset experienced, many people lost hope. Michal van de Poppe, a well-known cryptocurrency analyst, pointed out how the asset might be headed toward $10.

Notably, the asset is currently 84.11 percent behind its all-time high, which was $52.88. While the asset was hoping to reach $10 in the near future, many in the community believed that the continuation of its current thought may drive the asset above $12.

Slumbering Ethereum Whale Triggers Price Upswing Of $1500

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An Ethereum whale woke up from its deep slumber and transferred over $22 million worth of ETH to an empty wallet. This caused the token’s price to briefly jump by $1,500 for the first time since the merge six weeks ago, Santiment observed. 

Becoming active after six years, the whale address moved 15,000 ETH at 2:49 UTC on Oct 26. Since this transaction, ETH’s price has risen over 8%.

Back in Aug, another leading blockchain platform Whale Alert tracked down a comatose Ethereum wallet that laid dormant since late 2014. This may be one of the early Ethereum investors who purchased this ETH during the ICO that took place in late July to early September 2014, as the cryptocurrency included in the wallet was pre-mined.

The owner of this wallet has reportedly shifted 200 pre-mined ETH valued at $282,115 after 7.2 years of inactivity.

According to reports, the whale address acquired up to 150,000 ETH in 2014’s Ethereum Genesis sale. On July 31, 2019, exactly five years after the ICO, 5,000 ETH were sent from the address to the Bitfinex3 exchange. ETH was valued at $219 at the time of the $1.095 million transaction.

ETH whale investors continue to hold onto the second-largest cryptocurrency by market cap as of September 11.

Ethereum Whales Accumulation Spree

According to Santiment data, 3.5 million additional coins have been added to Ethereum whale accounts that possess one million or more ETH since September 11. The inclusion raised the billionaire whales’ ETH holdings by 14% in the time since the Merge.

In contrast, according to prior Santiment statistics, ETH sharks and whales—the group of investors below billionaire whales that own between 100 and 1 million ETH tokens—have been liquidating their ETH holdings.

The largest portion of the wipeout, $62.74 million worth of liquidated short positions, is accounted for by the cryptocurrency exchange FTX. In the second and third position, respectively, are Okex and CoinEx.

After the price of the ETH token increased by more than 14% over the previous 24 hours, a series of cascading liquidations occurred. The current price of the second-largest cryptocurrency is $1543.


Cardano’s MVRV Score Might Trigger ADA To Explode

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A key Cardano on-chain metric is flashing signs of undervaluation as its relative position compared to its realized value recorded the lowest since Jan 2019, Santiment observed.

MVRV-Z score [market-value-to-realized-value] is the difference between the market capitalization & realized value. ADA’s MVR-Z score for the first time in 45 months plummeted to a negative 1.35, indicating that the asset is highly undervalued.

An MVRV value of 100% [or 2.0] indicates that, on average, all holders will make a 100% [x2] profit if they sell their coins or tokens at the present price. The higher this ratio, the more frequently traders have historically shown a tendency to sell.

On the other side of the spectrum, a negative MVRV value indicates that the asset is “undervalued” on average. This means that if all coins were sold, most traders will be realizing losses at the asset’s current price.

Santiment also noted that the last time MVRV Z-Score hit this level, ADA’s price doubled for the following 3 months. Let’s see why this might be possible.

Despite being stuck in a bear market that has been going on for several weeks, Cardano’s on-chain activity is shooting for the moon.

Here’s Why Cardano Might Be Primed For A Price Upswing

According to reports, on October 17 and 18, Cardano’s NFT volume reached 3 million and 2.8 million ADA, respectively. The Cardano network consequently ranked as the third-largest NFT protocol.

There are several DeFi developers, investors, community members, and internet presences in the Cardano ecosystem. Although most initiatives have the potential to be fully developed, they haven’t yet.

Per DefiLlama, the Cardano network has a Total Value Locked of $11 million, whereby SundaeSwap, ADAX Pro, and MeawSwapFi lead with $10 million, $751k, and $35k, respectively.

Given the aforementioned facts, Cardano’s price may rise in the coming days because the token has proven its resiliency by enduring this long after the bull market of 2021 and the bear market of 2022.

As reported by TronWeekly, ADA, along with XRP, Bitcoin [BTC], and Binance Coin [BNB] have positive crowd sentiment on their side for the upcoming Q4, per data aggregator Santiment.

“The crypto crowd is far from euphoric toward markets. But the persistent negativity and bearishness have faded as traders anticipate a rebound here in Q4. XRP, ADA, BTC, and BNB all indicate crowd bullishness.” 

XRP, ADA Riding High On “Crowd Bullishness” In Q4: Report

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XRP along with Cardano [ADA], Bitcoin [BTC], and Binance Coin [BNB] is savoring positive crowd sentiment for the approaching Quarter 4, data aggregator Santiment indicated.

“The crypto crowd is far from euphoric toward markets. But the persistent negativity and bearishness have faded as traders anticipate a rebound here in Q4. XRP, ADA, BTC, and BNB all indicate crowd bullishness,” while adding ETH has turned “slightly bearish”.

In particular, as of October 20, the trader sentiment was at its most bullish in a month, and are anticipating a price rebound for the mentioned coins in Q4, Santiment wrote.

Bitcoin has a weighted sentiment of 0.52 among the highlighted assets. Ethereum [ETH], the second-ranked cryptocurrency by market capitalization, is the only prominent digital asset highlighted by the behavior analysis platform that is slightly bearish.

Positive crowd sentiment does not, however, always translate into similar price action. The market intelligence firm recently used Twitter to elaborate on how social media buzz dampens potential cryptocurrency bounce.

The crypto market experienced its highest level of social media optimism in the past two months during the spike on October 19.

Santiment noted that the market quickly responded in opposition to the sentiment of the crowd by dropping prices in both the cryptocurrency and equity markets until the excitement subsided.

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XRP, ADA Riding High On "Crowd Bullishness" In Q4: Report 7

Although the long-term crowd sentiment has remained negative, it was noted that swing trades in October have been primarily influenced by the frequency of bullish and bearish calls.

Santiment concluded that cryptocurrency prices typically rise when social media platforms show that market sentiment is bearish. The opposite occurs, and prices decrease when the market sentiment is bullish.

The latest report, nevertheless, highlighted altcoins standing out in the crowd, especially the XRP token.

XRP Favourite Among Retail And Institutional Traders

The XRP token continues to be popular despite going through some difficult times. Many investors, both retail and institutional, use the asset to complete their various transactions.

The strength of RippleNet transactions is one of many elements that contribute to the XRP token’s success. In addition to this fact, the market’s outlook, an increase in whale activity, and listing updates are significant contributors to its expansion.

Ethereum Registers Highest Network Growth In 2022

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Ethereum saw a huge uptick in new addresses with over 135k created in a single day. According to the on-chain data platform Santiment, this network expansion is over 11% more than the last highest estimate for 2022 i.e, on Jan 3rd.

Despite a bearish price outlook, on-chain indicators are pointing towards positive development for Ethereum in terms of network activity.

Approximately 70k unique addresses per day were found to be rising, which was the highest level since early August, Santiment previously reported.

Since the Merge, another on-chain metric highlighted increased activity. The volume of transactions rose just two days before the incident, topping the daily average of $15 billion. Following the event, the transaction volume stood at an average of $3 billion, recorded a few weeks earlier.

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Ethereum Registers Highest Network Growth In 2022 9

Ethereum completed the switch from Proof of Work to Proof of Stake consensus on September 15, 2022. As a result, it was able to cut down the network’s energy usage by 99.8%. This also eliminated the blockchain’s dependency on energy-intensive mining and enabled the network to be secured using staked ETH.

Ethereum Merge Deemed As Technological Marvel

The ambitious Merge was an important step to achieve higher security, scalability, and sustainability. sSwitch the consensus algorithm was considered a major technological feat requiring the coordination of dozens of teams working for years. 

After the successful completion, the Merge was the subject of much speculation and excitement on social media, and the price of ETH suggested a potential “sell-the-news” move.

The broader crypto market experienced a wave comparable to that experienced by the U.S. equity markets when they succumbed to tremendous selling pressure.

ETH has been continuously under selling pressure since mid-September. The price of the asset has decreased by more than 25% after the Merge event.

Currently, ETH is hovering just above $1,300, but as Santiment pointed out, there are strong odds of a bounce soon. Utility spikes frequently signal possible asset breakouts, it added.

In other development, Ethereum’s permissionless decentralized ZK-Rollup StarkNet processed 3-6 million/week transactions, overtaking the world’s most dominant blockchain Bitcoin on certain weeks, TronWeekly reported.

According to the platform, at this rate, the layer-2 solution powered by the innovative ZK-STARK technology could likewise surpass global fintech player Visa in transaction speeds.

Bitcoin Saw 3-Month High Coins Move Off Exchanges

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Bitcoin registered one of the highest numbers of coins moving off of exchanges in three months. About 34700 BTC coins left exchanges on September 30th, showing potential signs of trader optimism going into the fourth quarter, Santiment stated.

“The last time at least this much $BTC left exchanges was June 17th, where prices jumped +22% the next 4 weeks”, the online data platform noted.

Even if Bitcoin saw substantial corrections in 2022, investor interest in the asset has surged. As the leading cryptocurrency seems to live up to expectations of being a safe haven asset in the context of high inflation, BTC’s trading volume has climbed consistently along this line.

In particular, on-chain statistics by Santiment showed recently that, the asset’s trade volume achieved its highest level since mid-June to stand at $42.68 billion as of September 29.

The Bitcoin trading volume partly complements the asset’s founding principles of prospering in high inflationary conditions. 

The majority of the world’s fiat currencies are also struggling in the face of an overbearing US dollar. As a result, it appears that investors are eager to sell fiat money while viewing Bitcoin as a safety net. Additionally, some investors are looking to make money through arbitrage.

Bitcoin Riding High On Investors’ Sentiment

Furthermore, the asset’s potential is highlighted by the rise in Bitcoin trading volume against fiat currencies. Due to their finite quantity, cryptocurrencies have been hailed by supporters as being a superior substitute for fiat money and gold.

The other day, Ardian Zdunczyk, the founder and CEO of The Birb Nest, offered his opinions on Bitcoin and potential developments for the cryptocurrency over the course of the upcoming quarter on Twitter on October 1.

The founder of Birb Nest first noted in a Tweet that BTC has historically performed well in the fourth quarter and that it would be intriguing to watch if the world’s most dominant crypto coin could repeat the feat.

Additionally, he used some historical data to demonstrate that investors should anticipate some positive returns over the upcoming two months, but he also made clear that there is no certainty that this will occur.

Ethereum’s On-Chain Metrics Display Unusual Activities

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The Ethereum network registered quite a few anomalies as the crypto market braced for the most important event – The FED releasing the GDP information.

Data from Santiment showed that there has been a gradual decline in competition for block space implying that market participants aren’t feeling any FOMO these days.

Between Ethereum’s declining fees & the sudden massive address activity spike we picked up a few hours ago, there are quite a few anomalies to watch as traders prepare for FED and GDP info coming out.

This in turn has lowered the Average Fees indicating that the traders are not going with the hype. In fact, they are expecting ETH prices to drop further in the anticipation of FOMC meeting.

The bottom line – Ethereum prices would remain volatile.

A few days ago, Tokenview also reported that Ethereum’s average Gas fee was a record low of 9.12 Gwie. It added that ETH’s Gas fee was on a downtrend for a straight 4 days.

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Ethereum's On-Chain Metrics Display Unusual Activities 11

Next, Santiment noted that the Active Address count saw one of the biggest jumps on Ethereum recently, which it deemed as not normal. “This might be some kind of a large-scale airdrop farming operation, the report added.

Even Supply on Exchanges too showed a sharp spike accounting for 0.5% of total supply, or roughly 500k ETH were added to the exchange wallet.

“Looks like people are seeking to exit their positions, whether for the reason of price declining or anticipating the negative data releases”, Santiment concluded.

Ethereum Registered A Price Uptick

Meanwhile, The Federal Reserve is widely expected to raise interest rates by another three-quarter of a point on 27th July, and it could stun markets by being more hawkish as per a CNBC article.

Federal Reserve meetings kicked off on 26th July, which are expected to wind up on 28th with the release of Q2 GDP.

Investors are hoping to see the Central Bank raise interest rates by another 75 basis points.

Nevertheless, crypto investors are up for another rollercoaster this week. At the time of writing this post, ETH is trading at $1470 and has risen by over 6% in the last 24 hours.