An ordinary little fish or shark going about its day may spot a pod of mysterious whales trawling the murky depths of the crypto sea – only to conclude it has nothing to do with them. This couldn’t be further from the truth as whale movements can help other investors predict roughly when a massive buying or selling action is about to take place.
And for that reason, it’s time to take a closer look at Ethereum [ETH],
we need to talk about ether
Analyst Ali Martinez claimed that when it comes to ETH, a major place to watch was whales trading with over 10,000 ETH. Pointing to the previous price rally following whale accumulation, Martinez claimed that 60 whales have joined the ETH pod since February this year. The analyst further added that this could be a sign of an upcoming bull run.
#ethereum Price # 10K of whales . is correlated with more than $ETH,
When the whales started piling up in Sep’20, $ETH increased by 1,300%. When they started taking off in May’21, ETH is down 62%.
60 whales have joined the network since Feb’22, indicating the start of a new bull market. pic.twitter.com/4qj9XBUH07
— Ali Martinez (@ali_charts) April 20, 2022
So, are these movements visible to the naked eye? Well, it’s hard to tell. The past days have seen consistent spikes when looking at whale transactions worth over $100k, but nothing to suggest the unusual number of new whales entering the network.
But sometimes, a change of perspective can help. Looking at the Ether supply held by the top non-exchange addresses, we see a spike that took the ETH count above 25 million.
If this was not proof enough, ETH active addresses have increased since April 18. While active addresses remained below the 573,000 mark in late March and for most of April, active addresses were hitting a high of 592.21k in the past few days.
On the other hand, it is important for investors to be cautious. After all, an increase in whales and active addresses does not always indicate meaningful activity. In fact, ETH velocity dropped sharply before press time, despite the rise in the price of Ether.
Mirror, mirror on the wall
, , Is Ether really the most beautiful of them all? Either is the case according to a report by Chainalysis, in which countries realized cryptocurrency gains in 2021. In fact, ether was more popular than bitcoin, as it was worth around $76.3 billion compared to bitcoin’s $74.7 billion.
The report states,
“We believe this reflects the increasing demand for Ethereum as a result of the rise of DeFi in 2021, as most of the DeFi protocols are built on the Ethereum blockchain and use Ethereum as their primary currency.”