As a seasoned analyst with over two decades of experience in both traditional and digital markets, I find the recent surge in Ethereum accumulation by sophisticated investors quite intriguing. The rapid increase in ETH held by accumulation addresses hints at a bullish sentiment that could potentially drive the price of Ethereum higher toward the end of the year.
Based on data from CryptoQuant, a company specializing in on-chain analysis, more than 19 million Ethereum (ETH) are now being held in wallets that are accumulating or stockpiling the cryptocurrency.
Ethereum Accumulation Continues To Surge
According to findings from a trusted CryptoQuant analyst, Burak Kesmeci, it appears that approximately 19 million Ethereum is now being stored in what are known as “accumulation wallets.” As we look back to January 2024, these same wallets were holding around 11.5 million ETH.
As a researcher examining Ethereum (ETH) holdings, I’ve noticed a significant accumulation trend over time. This could indicate that experienced investors might be gearing up for a potential surge in the digital assets market before the year ends.
Kesmeci pointed out that the quantity of Ether (ETH) stored in these wallets has nearly doubled and could potentially surpass 20 million ETH by the end of the year. Various elements are driving this significant buildup of Ether.
Initially, the SEC’s approval of Ethereum-backed exchange-traded funds (ETFs) this year provided the long-awaited regulatory guidance and green light for the second-largest cryptocurrency by market capitalization. According to the analyst, here’s what that means:
The strengthening regulations have increased trust in Ethereum, propelling it into mainstream use. It’s no longer exclusive to tech aficionados; institutions and individuals alike view it as a significant player in the financial landscape of tomorrow. I predict that these specific addresses will hold approximately 20 million ETH by year-end. Given that Ethereum is currently worth around $4,000, the total value would exceed $80 billion, making these accumulation addresses as valuable as many global corporations.
By October 18, 2024, US-based exchange-traded funds (ETFs) specializing in Ethereum (ETH) spots have a total value of assets under management (AUM) amounting to approximately $7.35 billion. This represents nearly 2.3% of the entire market capitalization of Ethereum. Over the past week, these ETH spot ETFs experienced an influx of $78.9 million, marking a reversal from two consecutive weeks of outflows.
70% Of ETH Holders In Profit
According to information from IntoTheBlock, about 70% of Ethereum owners currently have a positive return on their investment, whereas approximately 28% are experiencing a loss, and just under 2% are neither in profit nor loss.
Additionally, about three-quarters (74%) of Ethereum (ETH) owners have owned the digital currency for more than one year, while roughly a quarter (23%) have held it for less than a year but still over a month. This suggests that Ethereum investors are generally not in a hurry to sell their ETH holdings in the near future.
More people making a profit from their Ethereum (ETH) holdings might cause an increase in demand, possibly elevating the price of ETH. But if these profitable holders decide to sell, this could trigger a surge in supply, leading to market turbulence and fluctuations.
The case for heightened ETH volatility is strengthened by the recent sharp rise in open interest for the digital asset. Some crypto analysts are confident that ETH will re-test some of its crucial resistance levels before further upside movement.
For example, Crypto analyst Carl Runefelt has expressed his view that if Ethereum surpasses the resistance point of $2,640, it might kick off a substantial price increase. Currently, Ethereum is valued at $2,663, representing a 2.4% decrease over the past day.
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2024-10-22 07:34