The cryptocurrency market has also returned empty-handed from the last recovery move. While the leading crypto Bitcoin (BTC) was about to take the psychological $ 20 thousand, it fell to $ 19 thousand with the incoming selling pressure. The leading altcoin Ethereum (ETH) failed to protect $1,300. In this environment, analytics firm Santiment notes that Ethereum whales are selling their holdings. So should you be worried about that?
Ethereum whales sell their holdings
According to the latest Santiment data, major Ethereum investors are actively leaving their holdings. They’ve sold more than $4.2 billion in the last five weeks, according to the analytics firm’s statement. That means huge selling pressure. According to experts, the 25% price drop we saw in mid-September is likely to be the cause.
The buying and selling of whales has a significant impact on the price of the related asset. These key stakeholders were the main fuel for ETH in the market relative to the asset’s movement prior to the 25% correction. The activities of these stakeholders foreshadow Ethereum’s price performance. The same group of investors hoards cryptocurrencies instead of selling them when their price is in an uptrend. Santiment shared the following on the subject on his Twitter account:
Ethereum’s shark and whale addresses have sold 3.3 million ETH in the last 5 weeks alone. That equates to roughly $4.2 billion in cryptocurrencies in divestment. The price of the asset and Bitcoin price fluctuate depending on the behavior of these key stakeholders.
https://twitter.com/santimentfeed/status/1581451100091084800
According to the address supply holding between 100 and 1 million ETH, whales preferred to dispose of more assets than they had accumulated in August and early September.
There is also a positive side for altcoin!
Whales and sharks now have fewer coins than they do when ETH is trading around $1,400. Therefore, large investors tend to repurchase the assets they have sold before. Therefore, according to experts, it is possible that they will likely push the price of the asset higher than we saw in September.
Another growth factor comes from the implementation of the Merge update. As you follow on Kriptokoin.com, with this significant upgrade, Ethereum has become a deflationary network. Growth is also largely due to increased deflation of the asset. According to the estimation, Ethereum is almost at the top in terms of broadcasting the network. A high write rate and low issuance are unfortunately not a panacea for a persistent bull market. High network revenue use cases are the only factors driving the price of the asset up.
At press time, Ethereum is trading at $1,285, down 3% on a weekly basis, according to data from CoinMarketCap. The leading altcoin is down 73.7% from its all-time high of $4.9k, which it saw nearly a year ago.
51741
