Crypto Giants Ignore Market Tsunami and Invest Nearly $1 Billion on New Ethereum Purchases
Ethereum has provided traders with some relief in the shape of a sideways trading market, after suffering a heavy knock following FTX’s implosion last month.
The second-largest cryptocurrency by market capitalization has practically remained steady over the last week, rarely edging over 3% on either side as traders adopt a risk-averse stance ahead of next week’s FTX Capitol Hill hearings. Notably, after reaching a multi-month low on November 22, Ether has rebounded almost 16%, indicating the emergence of a possible rally.
Even if real on-chain activity and usefulness may seem unimpressive, critical whale accumulation has helped keep Ethereum strong. According to crypto data analytics company Santiment, Ethereum addresses holding 100 to 1 million coins have gathered back 1.36 percent of the total supply over the previous month. Consequently, this cohort contributed 561,000 Ether valued at around $690 million during the 5th and 6th of December.
Notably, this group holds two-thirds of Ether’s total supply and has been helpful in reducing bear pressure caused by traders abandoning holdings at the best possible rebounds during this crypto winter.
In order to reinforce the accumulation narrative, Ethereum exchange balances have been decreasing. According to the company, the quantity of Ethereum on exchanges has “dramatically decreased” in the previous month. According to “IntoTheBlock” statistics, Ether withdrawals in the last week were $4.78 billion compared to $3.92 billion inflows. Even more encouraging is the fact that the percentage of ETH on exchanges has dropped to its lowest level in four years, supporting the optimistic case.
“The last thing we’d like to see, particularly after a 75%+ collapse in 13 months, is supply flowing to exchanges,” the business noted, hinting that more sell-offs might be imminent.
IntoTheBlock’s market mood indicator for Ethereum indicates that the majority of traders are ambivalent about the market’s general trajectory. To determine how the future exchange liquidations will affect ETH prices, it will be required for this indicator to have either greed or fear bias.
According to statistics from CoinMarketCap, the price of Ether was $1,272 at the time of writing, a 0.16% gain over the previous 24 hours.
Also Read: Starbucks Launches Beta Testing Of New NFT Rewards Program Powered By Polygon