New data from the crypto analytics firm Santiment shows Ethereum whales are stocking up on the second most popular digital asset.
According to Santiment, holders of significant amounts of Ethereum are displaying confidence in the cryptocurrency despite current volatility in the market.
“The top 100 holders of Ethereum are once again beginning to accumulate higher percentages of the total token supply, in spite of the ongoing consolidation that has been occurring for the past couple of weeks.“
Santiment says the pattern suggests a potential price upside for the digital asset, although it may take a while before the value of the cryptocurrency starts to take off.
“Generally, when this kind of accumulation starts to mount, it’s a signal that those who have the most stake in ETH (and other respective tokens) are beginning to have a collective sentiment of the token being undervalued and believe it’s a great mid to long-term hold play.
Sometimes these price rises take a bit of time after these accumulation rises, but it is generally a good sign for Ethereum bulls.”
However, in the short term, a popular crypto trader and analyst warns the price of ETH may tank in what he calls a “red pill” scenario.
While bullish on ETH in the long run, Escobar predicts that the price of the cryptocurrency may plummet due to a lack of a strong buy-side volume. He says that if the cryptocurrency breaches the lower boundary of the trading range at $210, Ethereum’s price could drop to $192.
Red Pill timeline was off, but happenin rn. pic.twitter.com/8EGsQs8I9d
— ESCO₿AR 📈 (@TraderEscobar) March 4, 2020
At time of writing, Ethereum’s price is hovering at $226, down 0.03% in the last 24 hours, according to CoinMarketCap.
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