Onchain data reveals significant purchases of Ethereum within the last month, serving as a precursor to a possible price surge in value for the smart contract platform’s token.
Recent on-chain activities point to the possibility of a price surge for ETH following recent whale buying activities. According to data provided by Glassnode, large wallet holders of Ethereum have gone on a purchasing spree. Roughly 44 new accounts created since March 14 hold more than 10,000 ETH, approximately over $30 million worth of Ethereum each.
The statistics further show that more than 1,190 addresses now hodl more than 10,000 ETH. This points to a potential price surge for Ethereum. The expected uptick in price is due to the seemingly direct correlation between the number of whale holders in this category and ETH’s value.
From the data, the significant surge in Ethereum’s price between March 14 and April 4 coincides with an increase in whale addresses with over 10,000ETH. Within the same period, Ethereum whale addresses increased from less than 1,150 to almost 1,190. The supply shock caused by then hodling may cause a significant increase in ETH’s price going forward.
Significant Portion Of Crypto Market Still In Profit
Despite the recent poor performance and sideways movements in the crypto market, many investors are in profit. According to IntoTheBlock, both Bitcoin and Ethereum are currently showing strong bottom signals, with over half of their holder in profit at current prices.
Source: IntoTheBlock
According to the data seen above, the percentage of Bitcoin holders in profit with Bitcoins price at $39.497 stands at 58.44%. This value also equates to a total of 26.75 million addresses. About 16.9 million addresses, or 36.95%, are currently in a loss. The remaining 4.62% or 2.11 million BTC are at breakeven.
Source: IntoTheBlock
For Ethereum, the number of addresses in profit is significantly higher than in Bitcoin. Data shows that 52.89 million addresses or 69.25% are all in profit. Another 21 million addresses are in a loss, with the remaining 3.26% at breakeven with ETH’s price at $2,909.
Overall, the more significant percentage of BTC and ETH holders are in profit. If the market continues to see an upswing in prices, most will be satisfied with their investments.
Ethereum Price Slumps Despite Showing Strenght
Ethereum’s price has slumped off following a recent mini resurgence in price. Following the weekend capitulation, ETH’s price rebounded to $3,000 within yesterday’s trading day before falling off again.
According to Coinmarketcap, Ethereum slumped 5.35% to trade at $2,848. However, the price seems to fall in line with analysts’ predictions regarding the price. According to Michaël van de Poppe, a crypto analyst, the $2800 and $2500 regions offer significant support for Ethereum.
Poppe’s analysis also has the $2400 area as an area of interest with a strong resistance lying there. He further postulated that if Ethereum can retest and break through the support, it will moon.
Do you think Ethereum will have a surge in price in line with on-chain data? Let us know your thoughts in the comments below.
Chris is a crypto enthusiast and a firm believer in the blockchain’s ability to create a new financial paradigm. Through writing, Chris hopes to expose the intricacies of this disruptive technology and how it is beneficial to Africans and developing countries. He aims to give readers a rational and unbiased outlook of the industry by equipping them with the necessary information to make enlightened investment decisions.
