The price of ethereum recently experienced a major technical breakdown (similar to bitcoin). After breaking below late June 2019’s high of $370, ETH cratered by as much as 30% in less than 7 days. The decreasing prices likely cast a shadow on ETH day traders. Nevertheless, it did not discourage some crypto investors.
68 New ETH Whales Join The Network Amidst A 30% Correction
Data from behavior analytics firm Santiment indicates that some ETH investors were able to shake off the grim prices and accumulate more coins. The data shows that the number of addresses holding between 1,000 to 10,000 ETH increased over the past three days even as the price of ethereum continued dropping.
Specifically, approximately 68 whales joined the network during that period. This means that 68 new investors are now holding ether worth $340,000-$3,400,000 at the time of publication.
Interestingly, these new ETH whales came on board as the price of the crypto bled slowly. Notably, the crypto-asset even fell to as low as $325 on September 5, marking a 30% nosedive from the $370 level registered on the last day of August.
The above information was provided by crypto analyst Ali Martinez, who tweeted:
“@santimentfeed‘s holder distribution chart shows that as #Ethereum was falling, there was a spike in the number of addresses with millions of dollars in #ETH, colloquially known as whales.
Roughly 68 new whales holding 1K to 10K $ETH have joined the network in the past 3 days.”
The increase in ether whales is presumably a result of the roaring Decentralized Finance (DeFi) sector which is supported by the ethereum network. Moreover, the amount of ether locked in DeFi protocols has been on a steady increase — which is boosting the demand for ETH.
The new 68 whales have contributed to some buying pressure in the ETH market. Should this buying spree continue, the price of ethereum could recover to the pre-crash levels and even aim higher.
Some ETH Whales Initiated The Price Slump
While some investors increased their ethereum holdings in the past days, others were dumping on the market. In a September 6 tweet, Santiment indicated that top ETH exchange addresses decreased their holdings from $16.92 million to $15.89 million in the course of the last seven days.
Per Santiment, this action by ETH whales was what likely kick-started the brutal price correction.
At press time, ETH is trading at $366.46, representing a 3.46% increase on the day.