Ethereum Forecast: Whales Accumulate, and 3 Out of 4 ETH Holders Are in Profit – Is It Time to Buy?
Date: 2023-12-16 Author: Dima Zakharov Categories: BLOCKCHAIN
Ethereum (ETH) has become a key player in the world of cryptocurrencies, serving as the backbone for decentralized finance (DeFi) and the emerging Web3 infrastructure. As the second-largest cryptocurrency by market capitalization, Ethereum has captured the attention of investors worldwide.
What's noteworthy is the substantial price increase Ethereum has experienced, rising by 85% over the past year. Currently trading at $2,249 per coin, this surge in value has put 76% of Ethereum holders in a profitable position, according to data from IntoTheBlock as of December 16.
Interestingly, both short-term and long-term Ethereum investors are enjoying similar profit percentages, indicating the sustained strength of the Ethereum market. However, it's essential to delve deeper into the data.
Out of all Ethereum wallets, 23% of them currently hold positions with losses, while only 1% have acquired the token at current prices. Meanwhile, 21% of Ethereum holders have maintained their positions for a period ranging from one to twelve months, and 3% have recently entered the ETH market.
The question that arises is whether it's the right time to buy ETH, especially when 76% of Ethereum holders are in profit. It's important to recognize that a higher number of profitable Ethereum holders could potentially lead to increased selling pressure as they may decide to realize their gains.
Currently, 46% of ETH tokens are concentrated in addresses holding at least 0.1% of the total supply, indicating a relatively low concentration of whales and institutional investors. This factor reduces the risk of massive coordinated sell-offs.
Cryptocurrency traders are currently in a state of uncertainty, debating whether we are in a bull market within a bear market or already in a full-fledged bull market. Understanding the current state of the cryptocurrency market is crucial for making informed decisions about buying ETH.
Crypto analyst Ali recently revealed that some Ethereum whales have been actively accumulating the cryptocurrency, acquiring over 100,000 ETH worth $230 million in the past week. This is seen as a positive sign for the coin, reflecting the confidence of this category of investors in its future growth.
