Ethereum: Sharks, whales, their interest in ETH, and the events of the last 13 days

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  • Since FTX’s col­lapse, there has been an increase in ETH accumulation
  • As most HODLers fail to see prof­it, short traders appear to be accumulating

As the price of lead­ing alt­coin Ethereum [ETH] lin­gered above the $1,200 psy­cho­log­i­cal sup­port lev­el, data from San­ti­ment revealed that sharks and whales have ramped up their ETH hold­ings in the last 13 days.


Read Ethereum’s [ETH] price pre­dic­tion 2023–2024


ETH wit­nessed a 4% price drop in the last sev­en days. How­ev­er, accord­ing to the on-chain ana­lyt­ics plat­form, ETH address­es that hold 100 to 100,000 ETH grew their hold­ings by 3.4% in the last 13 days. 

For con­text, 13 days ago, Binance co-founder and CEO Chang­peng Zhao made the first tweet about FTX that cas­cad­ed into the exchange’s even­tu­al col­lapse. Sub­se­quent­ly, ETH sharks and whales embarked on an accu­mu­la­tion ral­ly as the gen­er­al cryp­tocur­ren­cy mar­ket plummeted.

Per data from San­ti­ment, this cohort of ETH hold­ers cur­rent­ly held their largest per­cent­age of ETH’s sup­ply since July 2021 – 46.85% at press time.

Source: San­ti­ment

Ethereum accumulation continues to climb

Although ETH trad­ed at the price lev­el last seen in June, on-chain data revealed that HODLers have increas­ing­ly accu­mu­lat­ed the lead­ing alt since 6 November. 

Fur­ther­more, data from Cryp­to­Quant showed a con­sis­tent decline in the coin’s exchange reserve. In the past two weeks, the amount of ETH on exchanges declined by 10% and sat at 20.33 mil­lion at press time.

Source: Cryp­to­Quant

This was an indi­ca­tion that few­er ETH sell-offs have tak­en place since FTX’s col­lapse, and more investors have bought than sold since then.

This posi­tion was fur­ther cor­rob­o­rat­ed by the growth in ETH’s sup­ply out­side of exchanges with­in the same peri­od. As per data from San­ti­ment, the alt’s sup­ply out­side exchanges went up by 2% since 6 November.

Source: San­ti­ment

How­ev­er, as uncer­tain­ty and FUD trailed the gen­er­al cryp­tocur­ren­cy mar­ket fol­low­ing FTX’s col­lapse, investors’ sen­ti­ment toward ETH remained most­ly neg­a­tive and sat at ‑0.613 at press time.

In addi­tion, most ETH hold­ers held on to their tokens at a loss since 6 Novem­ber, data from San­ti­ment revealed. The Mar­ket Val­ue to Real­ized Val­ue (MVRV) ratio at press time was neg­a­tive ‑19.41%.

Source: San­ti­ment

If most hold­ers have seen loss­es on their invest­ments since 6 Novem­ber, why the con­tin­ued accu­mu­la­tion? A look at ETH’s fund­ing rates can explain this.

Since 6 Novem­ber, ETH’s fund­ing rates have been pri­mar­i­ly neg­a­tive. This meant that the ETH mar­ket was flood­ed by short traders who accu­mu­lat­ed in expec­ta­tion of a fur­ther price decline.

Source: Cryp­to­Quant



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