Ethereum whales are holding on to ETH they accumulated starting late last year. The hodl mentality has prevailed despite the current market conditions. This is based on a report by Santiment.
Based on the report, whales holding 1,000 to 10,000 ETH are still holding their coins. The whales rapidly accumulated large stashes of ETH since October 2020. In fact, whale behavior helped drive the top altcoin to exciting heights before the crypto market crash.
Ethereum price reached an all-time high (ATH) of $4,356.99 on May 12. However, the number 2 crypto has dropped by almost 50% to about $2,501.08 in just a matter of weeks.
The report also pointed out a decline in the number of active addresses on Ethereum, which is a bearish sign. Another bearish indicator is that investors are moving their ETH from central exchanges (CEX) into DeFi or personal wallets. In general, there seems to be a growing bearish sentiment around Ethereum.
Santiment believes the bearish sentiment could trigger a further market decline. This is because the health of both BTC and ETH affects the entire crypto market, according to the report. Adding to this view Santiment stated,Without putting in an abundance of research on several different crypto projects, you can often get a pretty good idea of where your favorite projects are heading next just by studying the fundamental health of Bitcoin, and secondarily, the health of Ethereum.
Notably, the possibility of a further market decline seems in line with some current predictions.
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