Ethereum
Ethereum Whale Hoards 15,000 ETH: Will This Finally Help Prices?
- Ethereum whales are increasing their holdings, but network growth is slowing.
- ETH gains slightly, but investors await the $4,000 mark.
Ethereum[ETH] has seen a significant rise in recent days, despite rumors of a possible rejection of its Spot ETF approval.
Interest in whales increases
One of the factors contributing to the rise in the price of ETH has been the activity of large holders.
According to Lookonchain data, a major whale with 120,874 ETH, valued at $370.6 million, deposited 15,000 ETH worth $46 million into Kraken on May 20.
This same whale withdrew 120,874 ETH worth $199 million, at a price of $1,647 each, from Kraken between August 31, 2022 and September 9, 2022, leaving 105,874 ETH worth $325, 3 million dollars.
The investor’s profit therefore amounts to $171.5 million.
Source:
Future problems
The significant accumulation of whales could further push the price of ETH to new levels. The price could soon recover $3,500 if the bullish momentum persists.
However, ETH might face some challenges in the future.
At the time of writing, network growth for ETH had plummeted, meaning new addresses were slowly losing interest in the altcoin.
While this may help ETH in the short term, ETH needs to be able to attract new addresses for long-term growth.
Along with this, the velocity of ETH also decreased, which implied that the frequency with which ETH was trading had also decreased.
Source: Santiment
How are the incumbents doing?
Despite the price surge, most ETH holders were unprofitable at press time. This was indicated by ETH’s MVRV ratio, which declined.
A negative MVRV ratio meant that ETH still had room to grow before it could take profit and a slight price rise could be expected.
However, ETH’s Long/Short ratio has decreased significantly, showing that the number of long-term holders accumulating ETH has decreased.
Read Ethereum [ETH] Price prediction 2024-25
The predominance of short-term holders could lead to increased volatility of ETH in the future, as they are more likely to sell their holdings during times of uncertainty, while long-term holders are more resilient.
Source: Santiment
At press time, ETH was trading at $3,107.09 and its price increased by 0.67% in the last 24 hours.