Ethereum has lost nearly 60% of its value since its peak in May. However, the extent of the reversal in value of the second largest cryptocurrency has definitely attracted more interest and support from crypto holders in the market. ETH recently lost its support at $ 2,000 and fell to $ 1,844 before bouncing back somewhat. However, this was a good entry point for traders in the market as the subsequent buying pressure drove the old’s value down to its print time value of $ 1,959.
Buy low, sell high.
We all know the basics of trading, but it gets difficult at times to pinpoint the bottom in the volatile crypto market. However, the movement of the whales generally provides an idea of where we are on the buy and sell curve. For example, according to the latest data from Santiment, the falling price of ETH has enticed many huge traders to fill their pockets.
According to Santiment, the top 10 largest ETH addresses or the so-called whales now own almost 20.58% of the total Ethereum supply.
Never before in the history of Ethereum have these whales had such a high proportion of the supply. The last time the whales held such a large percentage was in May 2017 at 20.54%.
The crypto analytics data provider added:
“After falling to just 18.46% after the #AllTimeHigh, they have now accumulated 2.12% more of the total supply of $ ETH in the last 41 days.”
What does this finding mean? Well, this is an indication that the biggest holders are continuing to hold and expand their Ethereum pocket despite the massive drop in value. This could be a sign of a price low for one of the largest cryptocurrencies in the market and build confidence from traders expecting a price reversal.
However, ETH investors remained cautious about the market. There is no doubt that upcoming changes in the network will build Ethereum for the future and investors know this. This belief among traders becomes apparent as they begin to move their holdings from centralized exchanges.
In fact, the value of Ethereum’s offering on the exchanges also fell to its lowest level since November 2018. It fell below 18% for the first time in 31 months, an observation that also underscores the lower risk of a major sell-off in the future.
Additionally, Ethereum’s reputation in the market has also improved, with institutional interest also increasing. With the approval of the first Ethereum ETF in Latin America in Brazil, the digital asset may not be far from Bitcoin when talking about cryptocurrencies.