On-chain data shows that Ethereum whales have recently engaged in significant accumulation, a sign that could be bullish for ETH price.
Ethereum whales recently added 200,000 ETH to their holdings
As analyst Ali Martinez explains in a new post on X, ETH whales have been on a buying spree recently. The term “whales” refers to Ethereum investors holding between 10,000 and 100,000 ETH in their wallets.
At the current cryptocurrency exchange rate, the lower limit of this range is $26.4 million, while the upper limit is $264 million. Holders in this cohort would be among the largest in the market.
Typically, the influence of any address on the network increases the more coins it holds, so whales, with their massive holdings, can be considered an important part of the ecosystem.
Therefore, it can be interesting to monitor their behavior, because even if it does not always directly affect the asset, it can still tell us about the sentiment of these huge traders.
Now here is the chart shared by the analyst that shows the trend of the combined balance held by Ethereum investors large enough to be called whales:
The value of the metric appears to have shot up in recent days | Source: @ali_charts on X
As the chart above shows, Ethereum investors holding between 10,000 and 100,000 ETH have increased their total balance since the crash in early August.
This suggests that these huge investors have viewed recent prices as profitable entry points into the cryptocurrency. Interestingly, a particularly strong buying frenzy has taken place in recent days, as seen by the sudden spike on the chart.
Whales added over 200,000 ETH (nearly $530 million) to their combined holdings with this latest accumulation rush, a notable amount.
Given that this spike in the indicator came as ETH managed to recover, whales may have viewed this increase as confirmation that further bullish action was ahead, and thus decided to bet more on the asset.
But of course, it remains to be seen whether this bet by Ethereum whales would work and whether the price of ETH would see an increase from here or not.
Regardless, the indicator could be closely watched, as any changes could indicate the direction these investors’ confidence is heading. A decline would naturally imply that whales are losing hope in this asset.
ETH Price
Ethereum had crossed the $2,800 mark just a few days ago, but the coin seems to have seen a pullback, as it now sits around $2,640.
Looks like the price of the asset has slipped down over the last few days | Source: ETHUSD on TradingView
Featured image by Dall-E, CryptoQuant.com, chart by TradingView.com
