Whales accumulate Ethereum as sell pressure falls
The latest findings by Santiment, published in Cointelegraph Consulting’s biweekly newsletter, suggest that regular users are returning to Ethereum in response to lower transaction fees.
Several influential Ethereum cohorts — including miners and some of Ethereum’s largest non-exchange addresses — have been showing signs of ongoing accumulation and increased confidence in the coin’s long-term potential.
After a period of redistribution and short-term selloffs by Ethereum’s block creators throughout August, the combined balance of Ethereum mining pools is once again on the rise, growing by 50,000 ETH (~$18,200,000 at the time of writing) over the last 30 days.
In the past, major drop-offs in the collective holdings of Ethereum miners frequently coincided with rising sell-side pressure and price regression, while periods of miner accumulation often boded well for Ethereum’s price in the near term.
A similar accumulation pattern has been observed by the 100 largest non-exchange Ethereum addresses, aka Ethereum’s biggest whales. Since the September 5 bottom, the combined balance of these 100 addresses alone has grown by 2,050,000 ETH (~$749,000,000 at the time of writing), pointing to rising confidence among ETH’s deep-pocket investors despite shaky market actions over the past 30 days.
In addition to miners and whales accumulating ETH, last month, Ethereum’s exchange-related metrics have indicated an ongoing decline in sell-side pressure and short-term exodus of ETH holders.
Daily ETH deposits (addresses used to transfer ETH to exchanges) have shrunk from 55,027 on September 1 to a 3-month low 23,821 on September 28, marking a -56.7% decline and indicating a network-wide reduction in sell-side pressure. Furthermore, the amount of ETH moving to known exchange wallets daily has plunged from 298,000 on September 5 to just 80,350 on September 28.
Read the full newsletter edition here to get the entire scoop, complete with charts and images.
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