Ethereum (ETH) whales have returned to the market as the altcoin price recorded a strong increase. Also, the popular meme coin Shiba Inu (SHIB) is back as the largest holding among ETH whales. Now the details…
Leading altcoin Ethereum whales return to market after strong price surge
cryptocoin.comAs you follow on Ethereum, the release date of the Merge network upgrade has been announced. After that, Ethereum is making a big comeback in the cryptocurrency market. The leading altcoin now completely shuts down the Proof-of-Work (PoW) consensus algorithm.
Ethereum has gained 30% since the beginning of the month. We’ve also seen a huge increase in the number of whale addresses. More than 130 new wallets have appeared on the network. According to experts, the increasing number of whales indicates that investors are buying back the cryptocurrency.
In a recent crypto market review, experts cite the moderate recovery in the digital asset market. He then highlights the possibility of a possible breakout in Ethereum and a few other cryptocurrencies. Crypto analyst Arman Shirinyan shares the following analysis:
Like today, Ethereum successfully broke the local resistance line of the consolidation channel. It immediately moved to the next major resistance level. As of now, Ethereum remains at the 50-day moving average resistance level, which must be broken to continue the current recovery rally.
Meanwhile, after the successful exit, we have seen a rebound in the number of addresses worth between 1,000 and 100,000 ETH since the drop in early May.
What to expect for the leading altcoin from now on?
Surprisingly, there is no sign of Ethereum experiencing a dead cat bounce, according to the analyst. Also, the analyst does not see any signs of a rapid bearish rally to show us that it will reverse in the coming days. In this context, the analyst makes the following assessment:
Regardless, it’s worth noting that Ethereum’s relatively strong price performance emerges during weekend trading days. It usually happens in a significantly less volume and liquidity environment. Therefore, it should be noted that even a low entry volume can significantly change the price of an asset.
Shiba Inu returns as largest holding among whales
Shiba Inu (SHIB) has surpassed the Silverway (SLV) token as the largest holding among the top 500 Ethereum whales, according to whale watching platform WhaleStats.
SHIB remains the biggest asset held by whales alongside ETH. SHIB’s average position size is 495.2 billion SHIB ($5.5 million) among top 100 ETH holders. SHIB positions are 53 times smaller than ETH positions. However, it’s still more than the USDC stablecoin, which is almost $2 million.
Overall, SHIB accounts for 23.33% of Ethereum whales’ portfolio, or $544.9 million, excluding ETH itself. Such an estimate would mean that around 49.5 trillion SHIB are concentrated in the balance of major ETH wallets, which equals 9% of the circulating token supply.
What motivates whales to take SHIB?
It is now possible to say that a large number of people are interested in purchasing SHIB. So many that the number of addresses holding tokens has exceeded 1.2 million recently.
It is not possible to fully understand what prompted major players to accumulate major Shiba Inu positions. But assuming the token has recently been actively accepted as a means of payment, two options appear. It is the first possibility that they buy SHIB, hoping that the price of the token will increase significantly due to its rapid spread. The second option is that they are attracted to the possibility of paying for fancy clothes, yachts and cottages using SHIB.
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