- Ethereum has seen some turbulence throughout the past day thanks to its close correlation with Bitcoin
- While ETH was able to set a fresh post-2017 high yesterday evening, it lost its momentum and has since slid lower
- It is still showing some signs of strength, however, and where it trends in the mid-term will undoubtedly depend on Bitcoin
- Despite some uncertainty regarding its short-term outlook, so-called “whales” appear to be confident that upside is imminent
- Data from an analytics firm shows that this body of investors is starting to accumulate the cryptocurrency
- In total, there are now 39 more addresses holding 10,000+ ETH than there were just two months ago
- This is a sign that large buyers are beginning to take larger stakes in the cryptocurrency
Ethereum is currently in the process of sliding lower following a rejection in the mid-$750 region seen last night.
The selling pressure here was quite significant, and Bitcoin’s rejection around $29,000 created an additional headwind for the cryptocurrency.
Although its price action has been somewhat lackluster over the past few days, there’s still a strong possibility that upside is imminent for ETH, as so-called “smart money” appears to be accumulating it at a rapid pace.
Ethereum Slides Lower Alongside Bitcoin
At the time of writing, Ethereum is trading down just over 3% at its current price of $730. This marks a notable decline from its recent highs of $755 that were set yesterday evening.
These highs came about in tandem with Bitcoin’s surge up to $29,000, but the rejection here was grave and caused the entire market to drift lower.
Where ETH trends in the mid-term will undoubtedly depend largely on whether or not BTC and the rest of the market can rebound and slow its descent.
Data Reveals that Whales are Rapidly Accumulating ETH
One analytics platform explained in a recent tweet that the number of Ethereum wallets holding over 10,000 Ethereum has been on the rise over the past two months, pointing to an ongoing accumulation trend.
This accumulation has not had any serious impacts on its price action but may be emblematic of a growing trend.
“With ETH crossing $750 for the first time in 31 months, we’ve discovered that there are 39 more Ethereum addresses holding 10,000+ ETH compared to just 2 months ago. Meanwhile, the amount of addresses holding 1-10,000 ETH have shrunk over this time.”
Image Courtesy of Santiment.
It may take a few weeks to understand this trend’s impact and longevity, but it is a bullish sign for Ethereum’s near-term outlook.
Featured image from Unsplash. Pricing data from TradingView.