Holders of large Ethereum positions have been actively accumulating more tokens over the past three weeks, according to data from Santiment. Despite the growing capitulation in the cryptocurrency market, during which ETH lost nearly 40% in value, wallets with balances between 100 and 100,000 ETH put about 1.1% of the token’s total supply into their bags.
The trend started on June 7, exactly two days before ETH left the $1,980-$1,725 range and collapsed more than 50% in a moment, reaching its lowest value in a year and a half at $881. Then, a rebound was expected, and at the moment the rate of ETH fluctuates between $1,000 and $1,300, where it is actively accumulated by the whales.
🐳🦈 #Ethereum shark and whale addresses (holding between 100 to 100k $ETH) have collectively added 1.1% more of the coin’s supply to their bags on this -39% dip. Historical evidence points to this tier group having alpha on future price movement. https://t.co/3PPz6Yrnxs pic.twitter.com/wReRrvHjyy
— Santiment (@santimentfeed) June 30, 2022
Is Ethereum (ETH) already cheap enough?
Despite the fact that Bitcoin is considered the main cryptocurrency, many people doubt the possibility of its large-scale application and give it the role of a means of saving money, or gold 2.0, a provider of technology. Ethereum, on the contrary, assumes this role and in a bright decentralized future appears to be the main technological pavement. This raises the question of whether ETH has fallen in value enough to be picked up.
The question is ambiguous. On the one hand, ETH has already corrected 78% from its peak price of $4,860 in November. On the other hand, we can see that despite a short stay in the area of $800-900, the rate of ETH is still dangerously close to an important support level, and another move down is not excluded at all. Moreover, it seems that an additional 7-10% from November highs is needed to make a full market cycle and start a new one.