On-chain data shows the Ethereum whales have participated in some notable buying, a sign that could be bullish for the ETH price.
Ethereum Whales Have Added To Their Holdings
As explained by analyst Ali Martinez in a new post on X, the supply of the Ethereum whales has recently gone up. The on-chain metric of interest here is the “Supply Distribution” from the analytics firm Santiment, which tells us about the total amount of an asset that a given wallet group is holding right now.
Addresses or investors are divided into these cohorts based on the number of coins that they are carrying in their balance. The 1 to 10 coins cohort, for instance, contains all the holders owning between 1 and 10 ETH.
In the context of the current topic, the whale group is of focus. The range of this cohort is typically defined as 10,000 to 100,000 ETH. At the current exchange rate, the lower bound converts to $26.2 million and the upper one to $262 million.
Thus, the only investors who would qualify for the group would be the big-money ones. Such holders can carry some degree of influence in the market, so their behavior, represented by the trend in their Supply Distribution, can be worth monitoring.
Here is the chart shared by Martinez that shows the trend in the Supply Distribution of the Ethereum whales over the last couple of weeks:
The value of the metric appears to have shot up in recent days | Source: @ali_charts on X
As is visible in the above graph, the Ethereum Supply Distribution for the 10,000 to 100,000 coins investors has recently seen an increase, implying these holders have participated in net accumulation.
In total, the whales have added 200,000 ETH (worth around $524 million) to their holdings with this buying spree. This is a significant amount and suggests some large holders think the cryptocurrency is worth buying at the current price. It only remains to be seen, however, whether this bet would pay off for these investors.
In some other news, there is a strong accumulation zone for Ethereum around the $2,500 level, as the on-chain analytics firm Glassnode has pointed out in an X post.
The trend in the Cost Basis Distribution of ETH over the last few months | Source: Glassnode on X
The above chart shows the data for the Ethereum Cost Basis Distribution Heatmap, an indicator that tells us how much of the asset’s supply was last purchased at what price levels.
“ETH’s Cost Basis Distribution Heatmap shows ~$2.5K as one of the strongest accumulation zones in months,” notes Glassnode. “Over 3.45M $ETH has a cost basis in the $2,513–$2,536 range, reinforcing this level as a major support zone.”
ETH Price
At the time of writing, Ethereum is trading around $2,600, up 3% in the last 24 hours.
Looks like the price of the coin has seen a surge over the past day | Source: ETHUSDT on TradingView
Featured image from Dall-E, Glassnode.com, Santiment.net, chart from TradingView.com
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