The latest findings by Santiment, published in Cointelegraph Consulting’s biweekly newsletter, suggest that regular users are returning to Ethereum in response to lower transaction fees.
Several influential Ethereum cohorts — including miners and some of Ethereum’s largest non-exchange addresses — have been showing signs of ongoing accumulation and increased confidence in the coin’s long-term potential.
After a period of redistribution and short-term selloffs by Ethereum’s block creators throughout August, the combined balance of Ethereum mining pools is once again on the rise, growing by 50,000 ETH (~$18,200,000 at the time of writing) over the last 30 days.
In the past, major drop-offs in the collective holdings of Ethereum miners frequently coincided with rising sell-side pressure and price regression, while periods of miner accumulation often boded well for Ethereum’s price in the near term.
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A similar accumulation pattern has been observed by the 100 largest non-exchange Ethereum addresses, aka Ethereum’s biggest whales. Since the September 5 bottom, the combined balance of these 100 addresses alone has grown by 2,050,000 ETH (~$749,000,000 at the time of writing), pointing to rising confidence among ETH’s deep-pocket investors despite shaky market actions over the past 30 days.
In addition to miners and whales accumulating ETH, last month, Ethereum’s exchange-related metrics have indicated an ongoing decline in sell-side pressure and short-term exodus of ETH holders.
Daily ETH deposits (addresses used to transfer ETH to exchanges) have shrunk from 55,027 on September 1 to a 3-month low 23,821 on September 28, marking a -56.7% decline and indicating a network-wide reduction in sell-side pressure. Furthermore, the amount of ETH moving to known exchange wallets daily has plunged from 298,000 on September 5 to just 80,350 on September 28.
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This post first appeared here: https://cointelegraph.com/news/cointelegraph-consulting-whales-accumulate-ethereum-as-sell-pressure-falls