Ethereum Whales Buck Bearish Trend, Accumulate Despite Losses
1min read Ethereum whales have been experiencing losses in recent weeks, but some have been increasing their holdings, raising questions about their motivations and the potential impact on the market. Despite the bearish price action, development activity on the Ethereum network has been rising, with a significant increase in events and contributors over the past month.
The rising development activity has coincided with accumulation among a particular cohort of whales, suggesting that these large investors may be taking advantage of the lower prices to increase their positions. However, the unrealized profit ratio of Ethereum whales has dropped to levels not seen since the previous bear market, indicating that many whales are facing significant losses.
The recent price action of Ethereum has been more bearish than that of Bitcoin, with Ethereum falling by 14.36% from its Sunday high, compared to Bitcoin's 8% decline. This highlights a sign of weakness for the leading altcoin, which has been underperforming Bitcoin on the daily timeframe since December.
Despite the challenging times for Ethereum and the broader crypto market, there are signs of hope ahead. Some whales have been accumulating Ethereum, which could indicate a positive sentiment towards the asset. The recent whale accumulation signals a potential shift in the market, with large investors increasing their holdings despite the bearish price action.
The accumulation metric tracked Ethereum holdings across various wallet sizes, revealing that wallets holding 100-1k ETH have steadily declined since January 2023. Meanwhile, the 10k-100k ETH cohort has increased their holdings since March 2024, with the trend accelerating recently. Retail addresses saw a sharp increase in holdings in early February, but this trend has since flattened.
Whale wallets holding 100k+ ETH experienced a slight downtrend over the past two years. Overall, the recent whale accumulation signals positive sentiment, despite the challenging times for Ethereum and the crypto market. As the market continues to evolve, investors will be watching closely to see how these large investors' actions impact the broader market dynamics.
