Ethereum’s inverse correlation between price and whales matter, here’s why
Bitcoin has been registering new all-time highs and the leader of the altcoins, Ethereum [ETH] has also been mirroring its gains in the market. The second-largest digital asset has also been reporting new highs above $1,800. As the value of Ether continues to rise in the market, the traders in the market were busy taking their Ethers off exchanges.
These traders included Ethereum whales that have been holding large sums of the digital asset and according to data provided by Santiment, the amount of Ethereum held by the top 100 whales on exchange address has plunged to levels last seen 27 months ago.
The above chart highlighted the inverse correlation between the price and the coins on exchanges. This indicated strong bullish sentiment as the whales are HODLing the digital asset and expect the price to go even higher.
Similarly, Glassnode shared data a few days back affirming this bullishness among traders. It noted that the number of Ethereum addresses were holding over 10,000 ETH has jumped massively to levels unseen since May 2019.
As the value of ETH hits new heights in terms of its value, we may see less and less Ethereum remaining on exchanges.
Grayscale has been exuding confidence in Ethereum as it has been increasing its holdings of the digital asset. The digital asset manager bought over 52k ETH that pushed its assets under management for ETHE to $5.5 billion. Ever since it re-opened accepting new investments for the altcoin, it has acquired close to 200k ETH.
Given these developments, there is ample reason for Ethereum users to be optimistic about the future of the digital currency as it now heads for the monumental $2000 price level.