Whales are showing interest in Ethereum.
A tweet from on-chain analytics firm Santiment on Thursday revealed that Ethereum sharks and whales are adding to their bags, a sign that these whales are expecting a sharp rise in the asset’s price soon.
According to the chart shared by Santiment, these big bag holders have been accumulating the digital asset steadily in the last three weeks despite the continued bearish price movement of the asset. It is worth noting that Ethereum has tanked by 39% within the period. According to Santiment, such moves have historically served as a key indicator of future price movements suggesting we could see an upward price surge of Ethereum in the short term.
“Ethereum shark and whale addresses (holding between 100 to 100k $ETH) have collectively added 1.1% more of the coin’s supply to their bags on this -39% dip. Historical evidence points to this tier group having alpha on future price movement,” tweeted the analysts.
🐳🦈 #Ethereum shark and whale addresses (holding between 100 to 100k $ETH) have collectively added 1.1% more of the coin's supply to their bags on this -39% dip. Historical evidence points to this tier group having alpha on future price movement. https://t.co/3PPz6Yrnxs pic.twitter.com/wReRrvHjyy
— Santiment (@santimentfeed) June 30, 2022
Notably, Crypto markets have not been able to match bullish price movements shown last year, despite expectations by several analysts. It is worth noting that many had predicted that Bitcoin would clinch the $100k price point within Q1 2022, and similarly, Ethereum would clinch the $10k price point. However, things have not worked out according to plan in the face of increasingly worrying macroeconomic conditions.
Despite these concerns, it is worth noting that Ethereum maximalists have a reason to be bullish on the asset. The long-awaited “merge” that will see Ethereum migrate to the proof-of-stake Beacon chain is thought to be around the corner.
It is worth noting that the migration of the Ethereum network to proof-of-stake is expected to lead to a rise in the adoption of the DeFi king. This is because the move will not only lead to a significant drop in the network’s carbon footprint but also improve the network’s scalability for cheaper and faster transactions.
While Ethereum co-founder Vitalik Buterin has told users to expect the upgrade in August, there are speculations that Buterin could further extend this timeline. As reported by The Crypto Basic on June 11, developers had revealed that there would be a delay in the implementation of the difficulty bomb, a key milestone toward the shift to proof-of-stake. However, lead developer Tim Beiko assured users that a further delay, if any, would not be significant.