It is no coincidence that Ethereum is rallying upward with such high confidence
The active accumulation of Ethereum continues, as the top 10 largest non-exchange addresses are actively hoarding more ETH leading up to the September merger. Largest addresses added 6.7% to their existing holdingWhich explains why the Ether rally is still going strong.
The 20% rally that originated on Oct. 25 has decelerated significantly, and the second biggest cryptocurrency on the market is now moving downward. However, it is too early to say that the uptrend for Ethereum is over.
Ethereum still hasn’t lost at least 30% of what it gained in its recent rally. The easing of selling pressure still leaves the possibility of another bounce. Despite overbought, a short-term correction is most likely to bring Ethereum back to its “normal” position, which could be a signal for a continuation of the rally.
Why does accumulation matter?
Without the proper accumulation ahead of a run upward, assets will not have the support of large investors; hence, they will be hit with severe selling pressure, which most often leads to a reversal.
During accumulation, retail holders sell their assets to whales who are usually long-term investors who did not sell their holdings at the beginning of the rally. Unlike retail traders who aim for the fastest and smallest profits, selling whale addresses only appear locally and around Cycle Top.
Recently, the activity of Justin Sun’s wallet has been actively discussed in the crypto community, as Tron’s former CEO executed a perfect trading and risk management strategy by gradually selling his holdings at the upper border of the cycle. Sun’s behavior was replicated by most whale-tier addresses and matched the activity of large investors on-chain.
