(Via ZEXPR) Ethereum (ETH), being the second-largest cryptocurrency, is regarded largely as a solution to the world’s growing need to step into the digital money era. In the eyes of investors, it is ‘future friendly’ since it’s highly suitable when it comes to long-term investments. We cannot ignore the fact that the introduction of cryptocurrencies such as Ethereum and bitcoin has significantly eased the payment procedures. Ever since the world realized what wonders crypto can work, we have witnessed unprecedented growth in their demand. The excitement continues to grow around the hope that the price of Ethereum and other cryptocurrencies will reach peaks in the years to come.
Be it any of the cryptocurrencies, the ones who have them in large numbers are always looked upon because their small steps can affect the market in the most unpredictable manner. The Investment Center broker David Bloom look into the world of Ethereum and sees what are the Whales up to these days.
In the last 24 hours, a surge was observed due to which the digital currency managed to stay beyond the $1700 mark today showing a fast move. ETH’s recovery is being attributed to a Chinese company that deals in photo editing applications.
On the 5th of March, they bought $22.1 million worth of ETH. Like Tesla and Square, they also bought Bitcoins but they seem to be the first big company who took the Ethereum move. It is predicted that by the end of this week ether will touch $1814 and by the end of this month, it will reach $1985.
All these figures are certainly appealing and would invite anyone to put in money but before that, it is always wise and rather common practice to look for the hash rate. A good hash rate keeps the network of cryptocurrency, Ethereum in this case, secure. The higher the hash rate, the more power would be needed to take full control of a network.
The average network hash rate of ether was recorded to be highest, 437, 561 TH/s. Hence, it can be said that this high rate gives an added sense of satisfaction.
Impact in Bitcoin
A spike in the growth rate of ETH has impacted Bitcoin significantly. Since Ethereum is expected to move well above the current value, Bitcoin options trader sentiment is expected to meet the decline that it has already started touching.
The Investment Center broker David Bloom relays, “Individuals, companies, or entities that hold large amounts of ether or any other cryptocurrency can lay a huge impact on the currency valuations. Their slight movements can impact the currency in terms of either liquidity and volatility alone or both together. These are so-called because their movements affect the waters where small fish swim and reside.”
The beginning of 2021 marked the beginning of the roller coaster ride of ETH giving birth to high volatility but wales are not ready to give up accumulation in large portions of ether. According to recent data, 68.7% of the total supply lies with them which is the highest of the last 3 years.
Santiment, an analytics company, revealed that last year’s November a considerable rise has been observed in the address holding 10k or more ETH. While addresses holding 10 to 10k ETHs have seen a decline and reached a three-year lowest percentage of 27.8%. Referring to Grayscale only, the digital asset management company has expanded its ETH holding which has reached $4.7 billion from $2.2 billion, this Friday.
If entities continue accumulating the supply of Ethereum it might lead to a reduction in the selling pressure. It is said that since the demand might remain intact but the supply will stoop down, Ethereum whales can lead to supply squeeze which translates into driven up prices.
Ethereum Whales have seemed to be more reluctant to show movements as compared to the Bitcoin Whales over the years. It is also observed and reported that whenever Ethereum movements take place, they mostly influence the volatility of ether more than its price.
The Investment Center broker David Bloom credits this mainly to the fact that Ethereum Whales like to hold currency instead of selling it for very long durations without affecting exchange inflows.
Trends In Buying And Selling
Where we’ve talked of ETH whale trends, we need to mention that despite the pole position of whale movements, trading intensities Ethereum is still undergoing a drop. This reflects the fact that the currently more dominant fraction in society comprises sellers and not buyers.
The up-gradation of Ethereum blockchain to Ethereum 2.0 has not only enhanced the scalability, speed, and efficiency but has also made it more stable and an attractive option for the traders out there. Although, a black swan event can pretty much change everything, for now, Ethereum whales and the world are not ready to give up on it.
Disclaimer: Our content is intended to be used for informational purposes only.
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