- Whales were seen accumulating ETH despite large unrealized losses
- The supply of ETH held by addresses that do not belong to exchanges has increased in recent weeks.
ethereum [ETH] Escalating tensions between Israel and Iran caused a sharp correction in prices in early trading in Asian markets on Friday. Although it has recovered to a value of more than $3,000 at the time of writing, the second-largest cryptocurrency has been mostly in the red over the past week. In fact, it lost more than 12% of its valuation, according to CoinMarketCap.
ETH profitability declines
This downturn resulted in lower net unrealized gains for the network. AMBCrypto investigated the same using data from Glassnode and found that the number of ETH holders making profits has declined sharply.
Source: Glassnode
When faced with such risks to their portfolios, many participants begin to capitulate, resulting in panic selling. But the actions of one particular whale investor piqued the market's interest.
Unfazed whales continue to buy big
According to on-chain tracking platform Spot On Chain, “huge” whales are accumulating ETH despite unrealized losses. Over the past five days, risk-tolerant investors have invested 41,358 ETH (worth approximately $128 million at current prices).
All told, the whale currently owns 117,268 ETH coins, which, if sold, would result in a loss of approximately $20 million.
However, the accumulation pattern was not limited to the aforementioned whales. AMBCrypto investigated further using Santiment data and noticed a steady increase in the ETH supply held by addresses not affiliated with the exchange.
These HODLing trends are a sign of confidence in the ETH price over the long term. These addresses may be hoping that ETH will recover well.
Source: Santiment
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What do you expect next?
According to the latest readings of the Ethereum Fear and Greed Index, the Ethereum market was in a neutral state at the time of writing. This indicates a balanced market sentiment with no strong buy/sell bias.
Bitcoin's [BTC] The halving is expected to cause ripples in the broader market, including ETH. After the last halving in 2020, ETH's trajectory mirrored that of BTC, with both major assets hitting new highs the following year.
