Whales are guided by long-term storage of ether

by in Cryptocurrency News

Whales

Over the past few months, investors have been withdrawing Ether (ETH) from cryptocurrency exchanges. Moreover, the outflow is observed both from retail traders and large holders of altcoins.

Whales have been sending Ether for offline storage since January 2021. However, a sharp decline in the cryptocurrency exchange balance has been observed since the beginning of October. It was then that we saw another ascent of the coin, as its supply on trading floors decreased, which eased the pressure from sellers.

The altcoin is retreating with Bitcoin this week. On Wednesday, November 17, the price of Ether fell to $ 4150. However, the whales are not confused by such dynamics. On the contrary, they prefer to take advantage of the fall in the value of the asset and buy at the most comfortable prices.

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The stocks of the ten largest OTC Ethereum addresses significantly exceeded the volume of the cryptocurrency housed in ten whale wallets on marketplaces, according to the Santiment review.

Real Vision analyst Raul Pal recalled that despite all the problems of Ethereum, the network is still the leading platform for smart contracts.

According to the expert's forecasts, by the second quarter of next year, the price of Ether will reach $ 20,000. The value of the coin will increase as the DeFi and NFT markets develop. The lion's share of projects within these ecosystems is just launched on Ethereum, which increases the demand for the underlying asset of the network, said Raul Pal.