Key Points
- Despite a sharp price correction, a whale investor continues to accumulate Ethereum (ETH).
- The increase in ETH supply held by non-exchange addresses indicates long-term confidence in the cryptocurrency.
Ethereum (ETH) experienced a significant price drop in recent trading due to geopolitical tensions. Despite this, the cryptocurrency managed to recover and maintain a value above $3,000. Over the past week, Ethereum’s value has largely been negative, with a loss of over 12% according to CoinMarketCap.
This decrease in value led to a decline in the network’s net unrealized profits. Data from Glassnode revealed a sharp decrease in the number of ETH holders making a profit.
Whale Investor Accumulates ETH
In response to portfolio risks, many investors resort to panic selling. However, one whale investor has been accumulating ETH despite unrealized losses. According to Spot On Chain, this investor purchased 41,358 ETH in the past five days, equating to approximately $128 million. The whale now holds 117,268 ETH, which, if sold, would result in losses of around $20 million.
Increased ETH Holding by Non-Exchange Addresses
The trend of accumulating ETH is not exclusive to this whale investor. Data from Santiment shows an increase in the supply of ETH held by addresses not linked to exchanges. This suggests confidence in the long-term value of Ethereum, with these addresses possibly anticipating a rebound in its price.
At the time of writing, the Ethereum market is neutral according to the Ethereum Fear and Greed Index, indicating a balanced market sentiment. The upcoming Bitcoin (BTC) halving is expected to impact the broader market, including Ethereum. Following the last Bitcoin halving in 2020, Ethereum’s price trajectory mirrored that of Bitcoin, with both hitting new highs the following year.
