Ethereum [ETH] has been through a period of significant fluctuations recently, with metrics on the blockchain showing conflicting signals. There are indications that certain Ethereum whales have paused their accumulation, hinting at a possible change in sentiment among major holders.
Nevertheless, amidst this, Ethereum has recently witnessed a surge in network growth, reaching a four-month peak. This uptick serves as a positive sign of increased activity and adoption within the network.
Ethereum Whales Reduce Accumulation Activities
An examination of Ethereum addresses through Glassnode has unveiled varied responses to recent price changes across different holder categories. Addresses holding 10-100 ETH have maintained a steady state, showing neither significant sell-offs nor new accumulations.
Conversely, there have been more pronounced movements in larger addresses. Accumulation for addresses holding 1,000-10,000 ETH ceased towards the end of August.
Furthermore, there has been a noticeable reduction in holdings, signaling either redistribution or sell-offs. This change indicates a decrease in exposure by mid-tier whales.
Moreover, larger addresses with holdings of 10,000 ETH or more reduced their accumulation even earlier.
Data indicates that these addresses stopped accumulating around July and, akin to the 1,000 ETH addresses, they have also been redistributing or selling off their holdings since then.
Positive Signs from Recent Ethereum Network Growth
While the recent drop in accumulation from whale addresses might be seen as a negative sign for Ethereum, the network’s growth in new addresses paints a more optimistic picture.
As per Santiment’s data, Ethereum recently saw a surge in daily new addresses, peaking at over 126,000. This marks the highest level since June and is noteworthy as it occurred on a Sunday, typically a day with lower network activity.
ETH Concludes the Weekend on an Upbeat Note
An analysis of Ethereum’s daily chart reveals positive price movements over the weekend. By the end of trading on September 8th, ETH had risen by 1%, trading around $2,297.
This followed a 2% increase in the previous session. At the time of this update, ETH has entered the $2,300 price range, showcasing a modest increase of less than 1%.
The recent surge in network growth, characterized by a spike in new addresses, underscores the growing interest in Ethereum, even amidst market volatilities.
While whale accumulation has slowed down, the rise in network participation suggests that smaller investors or newcomers are getting more involved in the Ethereum ecosystem. This renewed interest could help balance out the overall market dynamics.
The interplay between the slowdown in whale activity and the increase in network growth will be crucial in determining Ethereum’s future price movements and network resilience.
If smaller investors continue to display interest, this could help counterbalance some of the downward pressure from reduced whale accumulation, potentially bolstering ETH’s price in the short term.