New Delhi (CoinChapter.com) — Ethereum, the second-largest cryptocurrency by market cap, saw its prices decline in the market correction that began on Tuesday. However, it seems ETH whales are making most of this slump by accumulating the token in large numbers.
Whales are individuals or firms who own around 10,000 ETH or more. For the last week, ETH has been unable to hold above the $2,500 mark. However, Santiment, a cryptocurrency on-chain data firm, reported that ETH holdings in the top 10 non-exchange whale wallets are at their highest since July 2016.
As per a tweet by the data firm, Ethereum non-exchange whale wallets hold 19.67 million coins combined.
Ethereum, the world’s leading smart contracts platform hosting more than 90% of the decentralized finance projects, saw its prices rise by 229.86% year-to-date, beating even its top rival Bitcoin.
The number of investors with 10K-100K ETH has risen to an all-time high, but at the same time, the number of investors who own 10 – 10K tokens has declined. Interestingly, small investors with 0 to 10 coins have increased in number as well.
Ethereum balance on exchanges has declined too. A decrease indicates that investors are hodling their tokens and planning for long-term gains. Also, with the lesser supply of ETH available, token prices may rally if demand increases.
Ethereum prices slid by 6.9% on Wednesday to end the day at $2,368. The first major resistance level for the token is $2500, while the first support level is $2,294.
Ethereum prices have stayed above the 200-Day moving average(blue) line on the daily chart. However, on the 4-Hour chart, the price is just shy of crossing above the plot. A Moving Average line plots the average prices of the past 200 intervals. These intervals can be days or hours. The technical indicators for ETH stand at buy, for now, indicating a bull run in the immediate future.
At the time of writing, ETH was trading at $2390 per coin.
Support For Ethereum
The banking sector has come around on the use of cryptocurrency and blockchains. Major names in the finance world, including Goldman Sachs, Paypal, Mastercard, J.P. Morgan, etc., now offer blockchain and cryptocurrency-based services. In addition, Morgan Stanley, the investment firm, recently said it believes Ethereum is outperforming Bitcoin.
Ethereum 2.0 is also gaining traction in the banking sector. The 2.0 is an upgrade to the existing Ethereum network that enhances scalability, speed, and efficiency.
Also, consumer interest is piqued as users can transact with a digital wallet or tokens and collect better returns than what traditional savings vehicles may provide. The Proof of Stake system awards users for staking and validating transactions.
Ethereum has emerged as the logical choice for the green-minded investor against environmental concerns plaguing Bitcoin. To illustrate, Bitcoin uses about 707 kWh of energy, while Ethereum chugs along on a paltry 62.56 KWh. Additionally, Ethereum 2.0 claims to be even more energy-efficient.
Thomas Eichenberger, head of business units at Sygnum Bank, pointed out that Ethereum is getting attention from institutional clients who don’t know the crypto space well. So, they plan to focus on the largest coins in the first steps. With its market cap and the growing importance of the network, Ethereum is becoming the natural choice for this attention.
Microstrategy CEO Michael Saylor, a hardcore Bitcoin supporter, recently praised Ethereum in an interview. He said that the Ethereum network seeks to disrupt the traditional finance sector. In his words, “Ethereum is trying to dematerialize exchanges and the financial establishment.” However, he also affirmed that all cryptocurrencies have a place in the market.
Although Ethereum prices haven’t crossed the $3000 mark since the May 19 crash, the token isn’t lagging for bullish fuel. On the contrary, with the institutional and individual support that it has garnered, a bullish rally is in the forecast for ETH.