- Ethereum whales increase their holdings, but network growth slows down.
- ETH rose slightly, but investors held on to reach the $4,000 level.
Ethereum[ETH] Its shares have been on the rise over the past few days, despite rumors that a spot ETF (Spot ETF) might be denied approval.
Interest in whales is on the rise
One of the factors that contributed to the rise in the price of ETH was the activity of large holders.
According to Lookonchain data, a large whale holding 120,874 ETH, worth $370.6 million, deposited 15,000 ETH worth $46 million into Kraken on May 20.
This same whale withdrew 120,874 ETH worth $199 million, at $1,647 each, from Kraken between August 31, 2022 and September 9, 2022, leaving 105,874 ETH worth $325.3 million.
Thus, the investor’s profits amounted to $171.5 million.
Source: X
Problems ahead
A large accumulation of whales could push the price of ETH to new levels. The price may be able to reclaim the $3,500 level soon if the bullish momentum continues.
However, there may be some challenges that ETH may face in the future.
At the time of writing, the growth of the ETH network has declined significantly, meaning that new addresses have been slowly losing interest in the altcoin.
Although this may help ETH’s cause in the short term, ETH needs to be able to attract new addresses for long-term growth.
Besides, the speed of ETH has also decreased, which means that the frequency at which ETH is traded has also decreased.
Source: Santiment
How are the owners?
Despite the price rise, most Ethereum holders were not profitable at press time. This was indicated by the MVRV ratio for ETH, which decreased.
A negative MVRV ratio means that ETH still has room to grow before profits are taken and a slight price increase can be expected.
However, the long/short ratio of ETH has decreased significantly, indicating a decline in the number of long-term holders of ETH.
Read about Ethereum [ETH] Price forecasts 2024-25
The spread of short-term holders could increase ETH’s volatility in the future as they are more likely to sell their holdings in times of uncertainty, while long-term holders are more resilient.
Source: Santiment
At press time, Ethereum was trading at $3,107.09 and its price was up 0.67% over the past 24 hours.
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