Ethereum Sharks And Whales’ ETH Accumulation Tops Two-Year High

• Deep-pocketed investors are betting on the smart contract platform despite the latest volatility.
• ETH has added 2% in the past day as Fed’s minutes raise expectations of lower rate hikes.

Ethereum’s sharks and whales are buying ether at the fastest rate seen in years – according to a major analytics firm – a factor said could accelerate the value of the second-largest cryptocurrency in the next bull run.

Santiment said the last time such an accumulation was seen; the digital asset surged by 50% in about a month.

“Ethereum’s active shark and whale addresses continue accumulating with prices less than a quarter of their All-Time High levels a year ago. In October/November 2020, these 100 to 100,000 ETH addresses assisted in pushing ETH to a +50% price rise over 5 weeks’’ Santiment tweeted.

ZyCrypto reported on November 24 that the whale activities – including a single-day accumulation of $1 billion (the fifth-largest in the history of Ethereum) – were boosting the price of ETH. The volatility comes in the month that witnessed the fall of FTX and a record market crash.

At the time of writing, ETH was changing hands for $1,219. The value represents a difference of +0.31% in the past day and +3.92 in the last week. Technically, the smart contract token is attempting to break above the $1,220 resistance level, according to TradingView. However, the technical indicator MACD is looking bearish. In addition, RSI is almost at the neutral level, signifying a weak momentum.

ETH recovers after leaked FOMC report hints at interest rates tapering

Meanwhile, the macroeconomic factors that have impacted crypto this year could ease. According to leaked minutes of the US Federal Open Market Committee, the policymaker is planning to slow down interest rate hikes. FOMC increased the borrowing rate by 0.75% in November for the fifth consecutive time.

The minutes come after “a substantial majority of participants judged that a slowing in the pace of increase could likely soon be appropriate.” In addition, the FOMC noted that a slower interest rate increase is good for stabilizing the financial system.

Besides the whale activities and the possible easing of the macroeconomic environment, ETH could also derive positive sentiment from the upcoming Shanghai upgrade. The fork – expected in 2023 – aims to boost transaction speeds, lower gas fees and unlock the Beacon Chain staked Ether, allowing for staked ETH to be withdrawn.

Source: Read Full Article