Sharks and whales' ETH accumulation hits 2-year high

Despite the recent volatility, investors with significant financial resources are placing their bets on the platform for smart contracts.

As a result of the Federal Reserve's minutes, investors' anticipation of future rate reductions has increased, leading to a 2% increase in ETH's price.
According to a major analytics firm, Ethereum's "whales and sharks" are buying ether at the fastest rate seen in years, which is a factor that could accelerate the value of the second-largest cryptocurrency during the next bull run.

According to Santiment, the last time such an accumulation was witnessed, the value of the digital asset increased by almost fifty percent in a period of approximately one month.

"Ethereum's active shark and whale addresses continue to accumulate despite the fact that prices are currently less than a fifth of what they were at their All-Time High a year ago. These 100 to 100,000 ETH addresses played a role in pushing ETH to a +50% price rise over the course of five weeks in October/November 2020, according to a tweet by Santiment.

According to a report published by ZyCrypto on November 24, whale activities were driving up the price of ETH. These activities included a single-day accumulation of one billion dollars, which was the fifth-largest in the history of Ethereum. This month also saw a record market meltdown, which may be contributing to the heightened volatility.

At the time this article was written, one ether could be purchased for $1,219. The number illustrates a change of +0.31% over the course of the last day and +3.92 over the course of the last week. According to TradingView's data, the smart contract token is now making an effort to overcome the barrier of resistance located at $1,220. However, according to the MACD technical indicator, a negative trend is developing. In addition, the RSI is very close to the threshold that indicates neutrality, which indicates that momentum is low.

ETH rallies as a leaked FOMC report indicates a possible reduction in interest rates.
In the meanwhile, the macroeconomic variables that have influenced cryptocurrency prices this year may begin to relax. The minutes of the US Federal Open Market Committee have allegedly been stolen, and they reveal that the policymaker intends to slow down the process of increasing interest rates. The Federal Open Market Committee (FOMC) raised the interest rate for borrowing money by 0.75 percentage points in November for the fifth time in a row.

After "a substantial majority of participants judged that a slowing in the pace of increase could likely soon be appropriate," the minutes were drafted. In addition, the FOMC mentioned that a gradual increase in interest rates is beneficial for the maintenance of a healthy financial system.

In addition to the whale activities and the potential relaxation of the macroeconomic environment, ETH may also derive positive sentiment from the forthcoming Shanghai upgrade. The fork, which is anticipated to take place in 2023, has the goals of increasing transaction speeds, lowering gas fees, and unlocking the Beacon Chain staked Ether, which will make it possible to withdraw staked ETH.

Ojike Stella

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