Key Points
- Ethereum whales have paused their accumulation, indicating a potential sentiment shift.
- Ethereum’s network growth has hit a four-month high, suggesting increased activity and adoption.
Ethereum [ETH] has been subject to significant volatility recently, with mixed signals coming from on-chain metrics. Some Ethereum whales have stopped accumulating, which could indicate a change in sentiment among large holders.
Despite this, Ethereum has seen a four-month high in network growth recently. This is a positive sign of increased activity and adoption on the network.
Ethereum Whales Scale Back Accumulation
Glassnode’s analysis of Ethereum addresses reveals different responses to recent price changes across different holder categories. Addresses holding 10-100 ETH have remained stable, showing no significant sell-offs or new accumulations.
However, larger addresses have seen more significant movements. Accumulation halted for addresses holding 1,000-10,000 ETH towards the end of August. Since then, there has been a noticeable decrease in holdings, suggesting redistribution or sell-offs. This implies that mid-tier whales are reducing their exposure.
Even larger addresses holding 10,000 ETH or more stopped accumulating around July. Similar to the 1,000 ETH addresses, they have also been redistributing or selling off their holdings.
Positive Signals from Ethereum Network Growth
The recent decline in accumulation from whale addresses could be seen as a negative indicator for Ethereum, signaling caution among large holders. However, the network’s positive growth in new addresses provides a more optimistic outlook.
Data from Santiment shows that Ethereum recently reached a four-month high in daily new addresses, rising to over 126,000. This is the highest level since June and is notable because it occurred on a Sunday, a day typically experiencing lower network activity.
Ethereum saw positive price movement over the weekend. At the close of trading on 8th September, ETH saw a 1% increase, trading around $2,297. This followed a 2% rise in the previous session. Currently, ETH is in the $2,300 price range, with an increase of less than 1%.
The recent spike in network growth, marked by a surge in new addresses, highlights growing interest in Ethereum, even amid market volatility.
While whale accumulation has slowed, the increase in network participation suggests that smaller investors or new entrants are becoming more active in the Ethereum ecosystem. This renewed interest could help balance the overall market dynamics.
The interaction between slowing whale activity and rising network growth will be critical in determining Ethereum’s future price movements and network strength.
If smaller investors continue to show interest, this could offset some of the downward pressure from reduced whale accumulation, potentially supporting ETH’s price in the near term.
