Last month, the price of Ether has fallen from USD 240 to USD 194 per unit. Before the bearish market started, the Ethereum whales had mobilized funds to exchange houses.
According to a study by Santiment, the major whales in the Ethereum market moved a large number of crypto coins. At the same time, a significant drop in the price of Ether was occurring.
The study, published on March 4th, revealed that the top 100 Ethereum holders, not including exchange houses, currently have a greater capacity to influence the market. This is because a high percentage of the total number of ethers that they have is in circulation.
In Santiment’s graph, it is possible to see how the blue line, which represents the whales in the market, has a greater predominance than the yellow line, which represents exchange houses. This particularly occurs in key moments when the price of the cryptocurrency has produced important fluctuations.
Journey Driven by Ether Whales
Since October 2019, Ether has encountered a bearish trend that brought the price of the cryptocurrency to USD 120 last December 17th. During all this time, the whales, holders that own a large number of cryptocoins, concentrated a large percentage of the total ethers in circulation.
According to the analysis, this occurs when the whales and the market feel that the price is undervalued, which creates bullish expectations. This market behavior could be related to the price of Ether at the beginning of 2020, when an increase was reported that brought Ether to USD 280 last February 14th.
However, exchange houses began to have an increasingly growing percentage of the total market in circulation since January 15th, which means that whales were directing their volume of cryptocoins to exchange houses. After that date, the price of Ether has been falling continuously until today.
Market Whales Took Their Gains
According to the data provided by the Santiment team, the drop in the price of Ether last March 8th may be due to the sale of ethers that whales had previously made.
Before and after the fall in the price of Ether, several whales in the market mobilized their cryptocoins to exchange houses. These institutions could be the catalyst for the movement that led Ether from USD 238 to USD 198 in less than a day.
The Santiment team said that they had taken a deep dive to observe the recent behavior of the addresses with the largest amount of Ethereum and Chainlink. The objective was to see what the whales are currently doing in the cryptocurrency market. In the case of Ether, whales have been mobilizing their wallets to exchange houses, immediately after the market crash.
The analysis conducted by the Santiment team allowed obtaining data that can be compared to the scenarios that the market has presented so far in 2020. This leads to conclude that the study of the behavior of whales is a way to understand the reason for recent fluctuations in the cryptocurrency market.
By Alexander Salazar