On-chain data reveals that Ethereum’s largest investors, known as whales, have recently undertaken a massive buying spree, offering a potentially positive outlook for the cryptocurrency.
Recent Accumulation by Ethereum Whales
As highlighted by analyst Ali in a recent post, Ethereum’s whales have made substantial acquisitions in the market. The key metric in focus is the “ETH Supply Distribution,” which tracks the total amount of ETH held by different investor groups.
Investors are categorized into groups based on their ETH holdings, such as the 1 to 10 ETH cohort, which includes those holding between 1 and 10 ETH.
Of particular interest here are the whales, whose wallets typically hold between 10,000 and 100,000 coins. Given the substantial value within their wallets (ranging from approximately $16.3 million to $163 million), these whales wield significant influence over the Ethereum network.
Here’s a chart illustrating the recent changes in the total supply held by Ethereum’s whales:
As shown in the graph above, Ethereum whales have significantly increased their holdings recently. During this surge, these substantial investors acquired roughly 260,000 ETH, equivalent to approximately $423 million at the current exchange rate, all within a 24-hour timeframe.
This accumulation has pushed the total supply held by this group to approximately 27.03 million ETH, representing approximately 22.5% of the total circulating supply of the cryptocurrency.
This accumulation by Ethereum whales signals support for the current price levels and raises the likelihood of a potential rebound.
However, it’s worth noting that Ethereum’s current price is considered risky, as not many investors have established their cost basis at this level.
The data also reveals the distribution of investors’ cost basis in various Ethereum price ranges. It’s evident that the current price range has relatively few holders, with more concentrated groups holding positions just above the current level, implying that investors at the current price are, on average, in a loss position.
Typically, zones with a high concentration of cost bases act as price support, but no such zone exists in the lower ranges. Ali suggests that this could potentially lead to a correction towards the $1,200 level, which is the next level with some significant support.
While the recent purchases by whales are a positive development for Ethereum, the cryptocurrency may need to recover further to reach more densely populated cost basis zones to establish a robust rebound.
Current ETH Price
As of the time of writing, Ethereum is trading at approximately $1,600, marking a 5% decrease over the past week.
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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
