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Recent on-chain analytics have disclosed that Ethereum whales have initiated a significant purchasing activity amounting to $425 million, which may suggest favorable prospects for the cryptocurrency’s valuation. In a post on X, Analyst Ali emphasized these remarkable acquisitions, drawing attention to the “ETH Supply Distribution” metric, which monitors the overall supply held by various investor categories.
Investors and addresses are classified into these categories based on the number of tokens they own. For instance, the 1 to 10 coin category encompasses all investors possessing between 1 and 10 ETH. However, the emphasis here is on the group referred to as whales, which includes individuals or entities with wallet holdings between 10,000 and 100,000 coins.
Whales are significant players within the Ethereum ecosystem due to their considerable holdings, which equate to approximately $16.3 million at the lower end and $163 million at the upper end of the spectrum.
The accompanying chart depicts the recent fluctuations in total supply held by Ethereum whales over the past week. The data distinctly indicates a notable rise in supply held by these large stakeholders. Within just 24 hours, these whales acquired around 260,000 ETH, amounting to roughly $423 million at the current exchange rate.
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Consequently, the total supply within this whale group has now reached about 27.03 million ETH, indicating that they control approximately 22.5% of the entire circulating supply of Ethereum. This accumulation by Ethereum whales is a favorable indicator for the cryptocurrency, as it implies their endorsement of current price levels, potentially enhancing the chances of a price recovery.
Nevertheless, the same analyst has expressed caution regarding Ethereum’s present price. Only a portion of investors have established their cost basis at this level, as data reveals the number of investors across each Ethereum price tier. Notably, the current price tier has fewer holders, with more substantial concentrations in price tiers just above the current one. This suggests that, at current prices, a significant segment of investors would experience average losses.
Typically, areas with a high concentration of cost bases function as price support, but no such area exists in the lower price tiers. Ali indicates that this could result in a correction, with the $1,200 level emerging as the next critical support point.
While the purchasing activity from Ethereum whales at current prices is a positive trend, the cryptocurrency may still need to recover to reach denser cost basis areas for a strong rebound. At the time of writing, Ethereum is trading at approximately $1,600, reflecting a 5% decrease over the past week. Investors and analysts will closely observe how these dynamics unfold in the upcoming days.
The post Ethereum Whales Engage in a $425 Million Shopping Spree, Signaling Optimism appeared first on BitcoinWorld.
