Ethereum (ETH) price continues to consolidate above the $2,200 area on Thursday, as the crypto market rally begins to spread toward lower cap altcoin market.
As retail investors switch focus to altcoin and memecoin markets to amplify gains, crypto whales continue to double down on Ethereum and Bitcoin.
The Top 20,000 largest ETH investors were spotted adding another 75,000 ETH to their cumulative holdings this week.
Ethereum (ETH) bullish whale investors continue to aim for the $3,000 price target despite the crypto market rally spreading toward the lower-cap altcoins.
On-chain analysis explores how the crypto whales accumulating another 75,000 ETH (~$170 million) this week could impact the ongoing Ethereum price rally.
Top 20,000 Largest Ethereum Holders Have Invested Another $170M This Week
Ethereum and Bitcoin (BTC) experienced a mild pull back on Thursday as the retail investors begin to switch focus toward the altcoin markets, particularly, DeFi, Layer 1 alts, NFTs, Ordinals and Memecoin sectors to amplify their gains.
In effect, mega-cap altcoins like Solana (SOL), Dogecoin (DOGE) and ORDI and rapidly race up the crypto top gainers’ chart this week. However, a vital on-chain indicator has revealed that corporate entities and high net-worth investors continue to double-down on their ETH positions.
According to Santiment, a prominent on-chain data tracker, the top 20,000 Ethereum wallets have ramped up their buying spree this week, despite the mild ETH price correction.
As depicted in the chart below, the top 20,000 ETH wallets held a total of 62.21 million ETH as of Dec 1. But since then, they have rapidly accumulated another 75,000 ETH, bringing their cumulative balances to 63.96 million ETH at press time on Dec 7.
Ethereum (ETH) Supply Held By Top 20,000 Wallets | Source: Santiment
Intuitively, the Supply Held by Top Addresses metric provides a real-time snapshot of the aggregate balances currently deposited in the largest investors’ wallets.
Typically, an increase in the supply held by top addresses is often interpreted as a strong bullish signal. It indicates a buying trend among the largest stakeholders within the cryptocurrency’s ecosystem. When it occurs in the middle of a market rally as observed above, it suggest that the bullish whales are target another ETH price leg-up.
Notably, the chart above affirms that, due to their financial muscle, the historical accumulation trends of the Top 20,000 Ethereum investors has been closely correlated to previous ETH price rallies.
Hence, if strategic retail traders are inclined to mirror their trades, this could further amplify the buying pressure and push Ethereum price closer toward the $3,000 target in the days ahead.
Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.