Since the COVID-19 Black swan event until now, Bitcoin (BTC) whales and Ethereum (ETH) whales have shown some stark contrast in their behavior. These contrasts were discovered by @jimmyvs24 through data from glassnode.
In a Twitter X post, @jimmyvs24 wrote:
“ETH Whales: 1k ETH or greater, all in a massive downtrend. In the space of a year, we’ve seen 12M ETH offloaded, since 2020, its 20M ETH.
BTC Whales: 1K BTC or greater, all in an aggregate uptrend to flat. Offloaded some profits from 2021 or scared of FTX collapse. But resumed accumulation this year.
Significant sell pressure is coming and persistent for #Ethereum.”
Explaining this contrast, some believe that ETH is being sold “like there is no tomorroư”. Moves of crypto whales showed that they only put their faith in the future of Bitcoin – not any other altcoin, including Ethereum.
However, it can be seen that, after the COVID-19 crisis, the supply of ETH held in smart contract protocols is continuously increasing, perfectly symmetrical with a decrease in whale wallets. More than 30% of ETH supply is being held in Smart Contracts now.
As such, a large portion of ETH instead of being in whale wallets has moved to protocols. It reflects the usefulness of ETH in solutions and applications and as a result, ETH has great potential to surge in price in the long term. Ether retested the $1,550 support and if it breaks down from the support line, ETH price could drop $1,400.