- Ethereum is regaining its momentum as whales are currently on an accumulation spree.
- Whale stack-up is being bolstered by bullish retail activities, creating the likelihood of ETH hitting $2,000 soon.
The broader digital currency ecosystem has continued to experience a bullish start to the year with the combined crypto market capitalization pegged at $819, up 0.15 percent at the time of writing. Amongst the top tokens, Ethereum (ETH) remains one of the most watched, especially with the fact that it has maintained as many as four consecutive price gains this year.
At the time of writing, Ethereum is trading marginally higher at a price of $1,251.52 and maintaining its 4.34 percent weekly growth. At the moment, several on-chain metrics show that Ethereum has a good recipe for growth as whale accumulation and ecosystem activities has continued to shoot up.
According to data from crypto analytics service provider Santiment, the whale transaction count on Ethereum has risen to the highest level since December 16. While on-chain activities around Ethereum significantly grew toward the end of last year, the momentum was heightened early this month as price action turned bullish.
Pointing out how Ethereum price has seen a sustained break beyond the $1,260 this week, the first time it will be doing so in about 3 weeks, Santiment highlighted how Whales have identified the coin’s local bottom and has continued to accumulate. Summing up its observations, the analytics service provider said Ethereum whales have started showing interest in the coin again.
Corroborating the Ethereum Whale Accumulation
Data from WhaleAlerts has corroborated the ongoing whale interest as showcased by Santiment. According to the former analytics platform, as much as 32.2K ETH ($38.5M) was scooped up by an unknown wallet to Coinbase Exchange as of January 1. Related bogus accumulation was also recorded yesterday featuring a transfer of 95,342 ETH ($116.1M) between two unidentified addresses.
Since Ethereum switched its protocol from the Proof-of-Work (PoW) to its current Proof-of-Stake (PoS) consensus mechanism, there have been clear indications that there will be a renewed interest in digital currency, especially on the part of institutional investors.
While this class of buyers is not as vocal as Bitcoin investors like MicroStrategy Inc, it might be hard to tell whether the most recent whale transactions flagged by WhaleAlert are from native crypto traders or corporate investors.
The robustness of the Ethereum ecosystem and the diversity of the DApps have made the demand for ETH increase. While the current 24-hour trading volume is signaling a negative difference of 4.83%, Ethereum by valuation still accounts for the second most traded digital currency around today.
The sustenance of its relevance also boils down to the retail interest in the coin. According to Santiment, Ethereum small and medium scaled holders with 1 – 100 coins have topped their bags in recent times while addresses holding 1 ETH has topped their previous 1.7 million benchmarks.
According to the dynamics in the digital currency ecosystem, sustenance of this current accumulation on all fronts can effectively push the price of ETH to break the resistance at $2,000.
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