Ethereum’s price of Ethereum has recently dropped below the $ 2,000 mark in the past few days. While some people see this as worrying, others see it as an opportunity to buy as many coins as possible. More specifically, whales see this as a great buying opportunity for them and are taking advantage of this decline to replenish their Ethereum stocks.
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Data on Santiment shows that the top 10 names increased their holdings by 2% in the last month, resulting in them owning 20.58% of the total ETH currency supply in this market. This number sets each address to around two million ETH coins if it is evenly divided between the top 10 wallets.
Ethereum whales are now slowing down
The Santiment data shows the buying behavior of the ETH whales in recent months. It shows the buying and selling patterns and how much the wallets have accumulated so far.
The data shows the whales were selling coins when Ethereum hit its all-time high in May. The coin had risen to over $ 4,000 at the time and it shows that the wallets had taken profits on the coins they held, which at that point made up about 18% of the total Ethereum in circulation.
Bulls struggle to keep ETH price around $ 2,000 | Source: ETHUSD on TradingView.com
After the price crash and corrections over the past two months, the top 10 ETH wallets have resumed the accumulation of ETH in their wallets. So far, the wallets have managed to buy over 2% of the currently circulating ETH supply, which together makes them the owners of over 20 million Ethereum coins to date.
ETH stock exchange reserves collapse amid accumulations
Reports released earlier this month show that Ethereum’s foreign exchange reserves had hit new lows within a year. The exchanges lost over five million ETH, from 26 million by June 2020 to 21 million by June 2021.
As more whales and investors pile up coins to wait for the next bull rally, that number would likely continue to decline. The number and rate at which investors hold coins is much higher and more and more people are choosing self-storage options instead of keeping their coins on the exchanges.
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Cases of hacking on exchanges have shown time and again that coins left on exchanges are not secure and therefore holders of Ethereum that were bought on exchanges do not move into wallets in which they also control the private keys and seed phrases.
Staking is another reason for the break-in. More and more holders are making their coins available for staking in order to become validators in the ETH2.0 proof-of-stake network. Therefore, it is less tempting to leave the coins on an exchange as the holders can receive rewards for staking their Ethereum on the network.
Featured image from Coingape, chart from TradingView.com