ETH whales mopping up ETH may trigger price surge
2 min readTL;DR Breakdown
- Whales storing up ETH may cause the price to rise.
- The surging interest in NFT may also trigger a price surge.
- ETH will become a 5-digit asset, says analyst Lark Davis.
ETH Whales holding on strong to ETH
The number of whales holding ETH has not dropped in about four months as they refuse to sell their holdings, reveals Santiment. According to the data, ETH whales are still holding on strong even after the price hit a new ATH not quite long. This could cause the price of Ether to rise in the long run.
Crypto analyst, Lark Davis, noted that the price of ETH may surge due to the current supply shortage compared to demand. He said that he expects the price to rise more than 400% which would take it above $10,000. He continued that one possible trigger will be the increasing number of ETH Whales that are holding the asset for long thereby causing a supply crunch.
Lark mentioned that the current NFT mania could also drive the price to higher highs. This is easily explaianable as NFTs (non-fungible tokens) are created on a smart contract platform like ETH. Considering that ETH is the major market for NFTs, this could also cause a price surge.
ETH Whales increase their buying spree
Earlier this week, ETH Whales moved 235,000 ETH from centralized exchanges in just an hour. This happens to be the second-largest ETH outflow in just one hour, Davis revealed. Some days ago, Graysacle ETH trust also purchased additional 10,000 ETH.
Davis explained that ETH’s on-exchange prices have dipped to a new low. He noted that buyers have picked up the pace with their purchase at the moment. Whales are aggressively accumulating ETH, he said. Davis believes that Ether is still going to reach a 5-digit asset considering the shortage of supply.
Amid the current scaling issues of the network, ETH co-founder, Vitalik Buterin touted rollups as a possible solution some weeks ago. He revealed that the Layer-two solution will help ETH to scale by 100x before the release of ETH 2.0. Also, he said that the rollups will be implemented very soon.
