Similar to bitcoin, the Ethereum market has changed radically over the last three months
Over the last weekend, Bitcoin reached another All-time high of roughly $61,700 in a crypto sizzle. Unfortunately for the bulls, it didn’t last long as the premier digital currency took a plunge of around 10% in a stoke of volatility that we have all come to know of cryptocurrencies. Although BTC is trading well below the most recent ATH, around $55.8k at the time of writing, it stays pegged in a bullish daily channel for now.
Today’s story, however, is about Ethereum — something similar to what we talked about how large investors had lifted the BTC floor to $35k. Today’s analysis from Chainalysis Market Intel looks at how whale investors might be supporting the second largest crypto. We are going to look at the amount of ETH owned by different types of holders and their cost of acquiring Ethereum.
According to the research, Ethereum whales own 37 million of it, which is roughly 32% of the total supply — as of March 1, 2021. The most recent 7-day average ETH inflows to exchanges have increased by a whopping 74% over the 180-day average. Although this points to a more abundant supply of the crypto and short-term pressure on the prices, the longer-term dynamics are even more meaningful.
The charts above highlight the types of investors and how much they have invested in Ethereum in different time periods. The largest group of whales are investor whales who have held ETH for more than 2 years (left chart above) — owning 15.3 million Ethereum and acquired it at an average cost of $158, an 11x return given the current price.
Next in line are investor whales who have held ETH for less than 3 months — who own 9.8 million Ethereum and acquired it at an average cost of $1,338. Although the price of ETH has not fallen below this support level, they have been close to making a loss, at times this month.
Just like Bitcoin, Ethereum has undergone a fundamental shift in the past few months. According to the analysis, whales overall acquired 3.5 million Ethereum. Less than 3-month investor whales increased their holdings from 5.8 million to 9.8 million, while 1–2 year investor whales halved their holdings from 8.9 million to 4.5 million — since Nov. 2020.
This big investor buying push in Ethereum has raised the price floor from $464 to $1,338, suggesting the market now has a much higher cost basis than it did. Although this represents the broader price picture, it should not be construed as investment advice. As usual, do your own due diligence and trade according to your risk profile.
Originally Published on Medium
Email 📭| Twitter 📜 | LinkedIn 📑| StockTwits 📉 | Telegram 🔗 | Facebook 📘
