Ethereum whales scoop up the altcoin, likely to catalyze ETH price rally
- Ethereum network’s large wallet investors have been accumulating ETH tokens consistently for six months.
- ETH price recovery is likely to be catalyzed by declining exchange supply and rising whale accumulation.
- ETH yielded 3.15% weekly gains, amidst marketwide recovery of cryptocurrency prices.
Ethereum witnessed a spike in the holdings of large wallet investors in the network. Supply of the altcoin held by large addresses, as a percentage of the total supply has climbed consistently between May and November 2023.
ETH price remained unchanged in the past 24 hours after the asset offered 3.15% gains to holders.
Also read: Cardano price suffers decline with rising whale activity, ADA holders remain optimistic
Ethereum whale accumulation signals upside volatility
Large wallet investors in Ethereum added to their ETH holdings consistently over the past six months. Based on data from crypto intelligence tracker, Santiment, there is a spike in ETH price and the token’s supply held by large wallet investors in the network, seen in the chart below.
Ethereum supply on exchanges declined consistently, reducing the selling pressure on the asset. A reduction in exchanges’ reserves of ETH is conducive to Ether’s long term gains.
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ETH supply held by top addresses vs price
According to data aggregator IntoTheBlock, this week, $210 million worth of ETH left centralized exchanges, this marks the largest seven-day net outflow since August.
Ethereum price is $1,834 on Binance, the asset climbed 11.33% in the past month. ETH is poised for further gains, on account of the conducive macroeconomic environment and the upcoming upgrade in Ethereum.
The US Fed held interest rates steady this month and the job market started cooling off, both these macro events are conducive to a recovery in risk assets and support a bullish outlook among ETH traders.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
