Key Points
- Ethereum’s price rises as large holders increase their stakes, despite a possible rejection of its Spot ETF approval.
- Network growth for Ethereum slows down, indicating decreased interest from new addresses.
Despite rumors of a potential rejection of its Spot ETF approval, Ethereum has seen a significant price increase in recent days. One of the contributing factors to this surge is the activity of large holders.
Whale Activity and Ethereum’s Price
Lookonchain’s data reveals that a whale holding 120,874 ETH, worth $370.6 million, deposited 15,000 ETH (valued at $46 million) into Kraken on May 20th. The same whale withdrew 120,874 ETH, worth $199 million, from Kraken between August 31, 2022, and September 9, 2022. This left a balance of 105,874 ETH, valued at $325.3 million. As a result, the investor made a profit of $171.5 million.
This significant whale accumulation could potentially push Ethereum’s price to new heights. If the bullish momentum continues, the price could soon reclaim the $3,500 mark. However, Ethereum might face some challenges ahead.
Network Growth and Future Challenges
At the time of writing, Ethereum’s Network Growth had significantly decreased, indicating that new addresses were gradually losing interest in the altcoin. While this might benefit Ethereum in the short term, it needs to attract new addresses for sustained long-term growth.
Additionally, the velocity of Ethereum has also dropped, implying a decline in the frequency of Ethereum trades. Despite the price surge, the majority of Ethereum holders were still not profitable, as suggested by the declining MVRV ratio of Ethereum. A negative MVRV ratio indicates that Ethereum still has growth potential before profit-taking can occur and a slight price surge can be expected.
However, the Long/Short ratio for Ethereum has significantly decreased, indicating a drop in the number of long-term holders accumulating Ethereum. A higher prevalence of short-term holders could lead to increased volatility for Ethereum in the future, as they are more likely to sell their holdings during uncertain times, whereas long-term holders tend to be more resilient.
At the time of writing, Ethereum was trading at $3,107.09, with a 0.67% growth in the last 24 hours.
