Ethereum Whales Engage in Significant Accumulation
A recent analysis by Ali on X highlights the noteworthy purchases made by ETH whales. The “ETH Supply Distribution” indicator reveals the amount of supply held by different investor groups.
Investors are categorized based on the number of tokens in their balance. For example, the 1 to 10 coins cohort includes investors holding between 1 and 10 ETH.
In this context, the focus is on the whale group, which typically holds between 10,000 and 100,000 coins. As these whales possess substantial amounts (equivalent to $16.3 million to $163 million), they have the potential to exert influence on the network.
Here is a chart displaying the changes in total supply held by Ethereum whales over the past week:
The data above illustrates the number of investors who purchased Ethereum within each price range. It is evident that the current level has relatively few holders, and the lower ranges do not possess a significant number of holders with their cost basis.
The most concentrated groups are found in price ranges just above the current one, implying that at current prices, these investors would be experiencing average losses.
Typically, zones with a high concentration of cost bases provide support for the price, but no such zone exists in the lower ranges. Ali suggests that this could result in a correction towards the $1,200 level, which could offer some support.
Although purchases from whales at current prices are a positive step for the asset, a solid rebound will require a recovery towards the more concentrated cost basis zones.
Hot Take:
It is crucial for Ethereum to regain strength and reach denser cost basis zones in order to build a strong rebound. As an investor, staying aware of the behavior of whales and market trends can provide valuable insights for making informed decisions.
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