ETH key addresses intensify accumulation, weak hands continue to sell at a loss

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  • Key sharks and whales have grown their ETH hold­ings in the last month.
  • Even after a price decline, ETH sees few­er sell-offs.

Despite the con­tin­ued decline in  Ethereum’s [ETH] price due to the col­lapse of FTX, sharks, and whales (hold­ers of 100 to one mil­lion ETH tokens) on the net­work exhib­it no signs of slow­ing down accu­mu­la­tion, data from San­ti­ment showed.


Read Ethereum’s [ETH] Price Pre­dic­tion 2023–2024


FTX’s unex­pect­ed col­lapse pushed ETH’s price below its pre-merge lev­els as FUD over­ran the mar­ket. How­ev­er, the cohort of ETH investors that hold between 100 to 100 mil­lion tokens remained resilient. 

Data from the on-chain ana­lyt­ics plat­form showed that they grew their ETH hold­ings by 2.1% in the last month. Between 5 and 6 Decem­ber, they added 561,000 ETH tokens to their bags, the high­est dai­ly accu­mu­la­tion in the last three months. For con­text, the huge accu­mu­la­tion caused the cumu­la­tive shark and whale hold­ings to return to pre-merge levels.

Source: San­ti­ment

Buyers continue to buy

Even as ETH’s price dwin­dled in the last month, it still record­ed few sell-offs. Accord­ing to data from Cryp­to­Quant, ETH’s exchange reserve fell by 17%. This decline showed that the amount of ETH coins held on exchanges fell. 

Typ­i­cal­ly, investors send their assets to exchanges to sell them, and this would usu­al­ly grow such an asset’s exchange reserve. There­fore, a decline in an asset’s exchange reserve indi­cates that few­er sell-offs have tak­en place.

Source: Cryp­to­Quant

ETH’s sup­ply out­side of exchanges ral­lied by 3% with­in the same period. 

Source: San­ti­ment

Sit­u­at­ing ETH’s exchange activ­i­ty with­in the con­text of events in the last month, the decline in the amount of ETH held on exchanges, and the cor­re­spond­ing growth in the amount held off exchanges fol­low­ing FTX’s col­lapse was due to the fears and doubts that investors had con­cern­ing the safe­ty of their assets on cen­tral­ized exchanges.

Hence, the deci­sion to send them to self-cus­tody and to trade them on decen­tral­ized exchanges. Some have also held on to them to real­ize prof­it once the price picks up later. 

Blame the “weak hands”

Per data from San­ti­ment, an assess­ment of ETH’s Net­work Profit/Loss (NPL) when FTX col­lapsed showed a huge fall in the met­ric on 9 Novem­ber. This indi­cat­ed that many investors, in an attempt to save their invest­ments, sold at sig­nif­i­cant loss­es, a clas­sic case of the short-term capit­u­la­tion of “weak hands.” 

As new mon­ey attempt­ed to enter the mar­ket to prop up the asset’s val­ue, the FUD that plagued the mar­ket was too sig­nif­i­cant to over­come, and after a one-day jump in ETH’s price, it plummeted.

Towards the end of Novem­ber, when the gen­er­al mar­ket began to recov­er, ETH’s NPL dipped again, show­ing the exit of “weak hands” and the re-entry of “the smart mon­ey,” mark­ing the com­mence­ment of a local bounce back. 

Source: San­ti­ment

Even so, since 22 Novem­ber, ETH’s price has climbed by 10%, data from Coin­Mar­ket­Cap showed.



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