Whales Snub Ethereum: Bitcoin’s the Catch of the Crypto Sea

Key Takeaways:

• Bitcoin price slides, but whales remain determined.
• Ethereum holders prefer staking, but outflows continue.
• ETH/BTC risks another 8% slide.

YEREVAN (CionChapter.com) — The newly erupted war in the Middle East brought more uncertainty to the markets, already tarnished by inflation and continuous interest rate hikes. Bitcoin also failed its safe-haven test again and slid 3% to $27,200 on Oct 11, as the risk eversion narrative dominated the markets.

Bitcoin whales determined while Ethereum outflows continue

However, the whales continue accumulating and’ buying the dip,’ according to data from on-chain tracker Glassnode. Conversely, Ethereum whale holdings drastically drained year-to-date.

Arguably, the decline in whale holdings is accompanied by the rise in ETH tied in smart contracts and should not be the basis for a whale exodus FUD. However, geopolitical tensions, the oil price jump, and unfavorable market conditions could still harm Ethereum more than Bitcoin.

CoinChapter reported that institutional investors remain a key factor in the asset’s potential price increase. But, as of early October, they are unlikely to park their cash in Ethereum. Moreover, ETH already saw an outflow of $114 million year-to-date, while Bitcoin’s inflow stood at $168 million by late September.

Furthermore, the ETH/BTC price action continues to slide, justifying bearish expectations.

ETH/BTC loses key support and risks another 8% slide

ETH/BTC exchange rate dropped 7% month-to-date, reaching 0.057 on Oct 11. The price action also breached a significant support line, relevant since July 2022, hinting at more pain ahead for the leading altcoin.

Declining NFT on-chain activity and increasing L2 usage, which reduces gas consumption and, in turn, organic demand for ETH, exacerbated the bearish expectations in Q4, 2023. In addition, the DeFi sector activity has been low, which could also lead to further ETH/BTC decline.

If another leg down occurs, the target price for ETH will stand at 0.053 BTC, or another 8% lower than the current value.