Ethereum whales accumulate $600M in ETH; Is the green still an anomaly?

• Whales added 400,000 ETH despite a recent price increment

• More ETH is being circulated although the current vault could be overpriced

Like a ton of assets in the crypto-market, Ethereum’s [ETH] price jumped over the weekend. Even at press time, the second-largest cryptocurrency in market value maintained a 5.11% hike in the last 24 hours. Needless to say, this has brought some calm to the market. Especially since much of it was flashing red over the weekend. 

Read Ethereum’s [ETH] Price Prediction 2023-2024

However, despite the gains registered on the charts, whales did not seem to be content. As pointed out by Ali_charts, a crypto-analyst on Twitter, addresses holding 1000 to 10000 ETH added $600 million to their holdings.

The information, derived from Glassnode, revealed that the whales took the action when ETH was still hovering above $1,680 on the charts. 

On the opposite side of ETH

So, does the accumulation mean ETH still has a tendency to climb further? Well, according to Glassnode, the Network Value to Transaction (NVT) signal had a reading of 98.45, at press time. The metric often reflects the 90-day moving average trend of the daily transaction volume, rather than a day-to-day valuation. 

Compared to its value in recent times, the aforementioned NVT signal is a high one. And, the last time it was as high was back in February 2020. Hence, it seemed to confirm that investors were pricing ETH at a premium while the market cap’s growth outpaced its on-chain transaction volume.

Source: Glassnode

While the aforementioned metric considered ETH as being currently overpriced, more of the altcoin has been in circulation over the last seven days. The circulation shows the number of unique coins that have been used for transactions within a specific period.

At press time, the seven-day circulation was 3.96 million. This implied that many units of ETH were swirling around the market, despite their numbers falling when compared to the previous day. 

That being said, one metric that has consistently moved north is Active Addresses. This metric measures the number of unique addresses active on a network. With 24-hour active address count of 534,000, the reading implied that many wallets had either received or sent ETH over the last 24 hours. 

Source: Santiment

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Almost equal exchange flow reactions

While ETH remains on whales’ radar, activities on exchanges revealed that it has been a close contest for outflows and inflows.

In fact, according to Santiment, exchange outflows were as high as 28,400. This seemed to underline traders’ temporary market shortage and contribution to an asset’s appreciation.

Source: Santiment

On the other hand, the exchange inflows were 24,000. With the difference in favor of the outflows, it means that ETH has a slight chance of foregoing depreciation in the short term.

However, traders might still need to be cautious of projection. This, because of several negative developments and contrasting market reactions.