The large Ethereum whales seem to be at it again. Throughout 2020, the biggest holders of Ethereum, the second-largest cryptocurrency by market cap, have been observed adding huge amounts of crypto to their holdings.
In the fourth quarter of 2022, the whales have added crypto worth billions of dollars to their holdings.
Data from the crypto analysis and tracking platform, Santiment, shows that since September 11th, Ethereum billionaires (addresses that hold one million or more ether) have added 3.5 million extra coins to their holdings.
According to a tweet from Santiment, this increase in the large whales' holdings has jumped 14% since early September. Even more staggering is how there are only 132 addresses with that much ETH.
Recall that the historical Ethereum merge happened on September 15. As a result, some traders and analysts of the crypto market have tried to draw a correlation between the merge and the sudden spike in the whales' interest in ETH.
All 132 wallets belonging to these ETH billionaires hold a total of about 28.55 ETH, worth an eye-popping 36 billion dollars.
In contrast to the behavior of the Ethereum billionaires, the Ethereum whales and sharks (accounts holding between 100 to 1 million ETH) have been observed selling their holdings in the same period.
This redistribution of the ETH supply is a fairly interesting coincidence, considering how it started right after the ETH network merged with the Beacon chain and moved from POW to a POS consensus mechanism.
Despite these big moves by the whales, the price action of Ethereum remains unmoved. ETH continues to trade in the red and shows no signs of bullish momentum.
Over the last month, Ethereum has been down by more than -5% and is worth $1,291 at the time of writing.
Despite the big moves by the whales in September, the price of ETH remains relatively stagnant and has been trading in a range ever since.
Similar to what is happening in the rest of the market, the price action of Ethereum appears to be held down by its moving averages. It may require significant pressure to push the price above the immediate resistance of around $1,370.
Overall, from a medium-term perspective, the RSI shows that the market is relatively neutral and that both bulls and bears lack enough strength to influence the market in either direction.
For the bulls to fully take control of the market, the price action of Ethereum has to break and close above the $1,400 resistance.
However, if the price of Ethereum breaks below and closes below the $1,230 support, the price of the cryptocurrency may be in for further downward movement.
Disclaimer: The author's comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)