An ordinary minnow or a shark going about their day might spot a pod of mysterious whales traversing the turbid depths of the crypto sea – only to conclude that it has nothing to do with them. This couldn’t be further from the truth as the actions of whales can help other investors roughly guess when large-scale buying or selling actions are about to happen.
And for that reason, it’s time to take a closer look at Ethereum [ETH].
We need to talk about Ether
Analyst Ali Martinez claimed that when it came to ETH, a prime place to look was the transactions of whales with more than 10,000 ETH. Pointing to past price rallies that followed whale accumulation, Martinez claimed that 60 whales joined the ETH pod since February this year. The analyst further said this could be a sign of an upcoming bull run.
So, are these movements visible to the naked eye? Well, it’s hard to say. When looking at transactions for whales worth over $100,000, the past few days have seen consistent spikes, but there is no indication of an abnormal number of new whales entering the network.
But sometimes, a change of perspective can help. When looking at the Ether supply held by the top non-exchange addresses, we see a spike that took the number of ETH above 25 million.
If that wasn’t enough, active ETH addresses surged from April 18th. While late March and most of April saw active addresses remain below 573,000, the past few days have seen active addresses hit 592.21k.
On the other hand, it is important for investors to be cautious. After all, an increase in the number of active whales and addresses does not always signal significant activity. In fact, the speed of ETH fell sharply before press time, despite Ether’s price rising.
Mirror, mirror, on the wall
. . .is Ether truly the fairest of them all? Or so is the case according to a report by Chainalysis which looked at countries’ 2021 realized cryptocurrency gains. In fact, Ether was more popular than Bitcoin, as it raked in about $76.3 billion compared to Bitcoin’s $74.7 billion.
The report stated,
“We believe this reflects increased demand for Ethereum following the rise of DeFi in 2021, as most DeFi protocols are built on the Ethereum blockchain and use Ethereum as their primary currency.”
