ETH Drops Sharply as Whales Increase Accumulation

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The price of Ethereum [ETH] has remained stable over the past few days, yet whales have shown significant interest in the token.

Ethereum Whales Move In

The number of Ethereum wallets holding substantial amounts of ETH is on the rise. According to Santiment data, the number of Ethereum addresses with over 10,000 ETH has surged by more than 3% in the past four weeks.

Whales holding significant amounts of ETH can greatly influence market sentiment. If they continue to accumulate, it could drive demand for ETH, potentially leading to price increases.

This could attract further investment, creating a positive feedback loop and pushing prices even higher. While whales can contribute to price increases, their actions can also cause volatility.

If these large holders decide to sell a substantial portion of their ETH holdings in a coordinated manner, it could trigger a sharp price drop, causing panic among smaller investors.

New Developments on the Network

Beyond whale interest, another factor that could significantly impact Ethereum is ongoing developments within the network. In the most recent developer call, various aspects of the Ethereum network were discussed.

The Ethereum developers’ meeting highlighted upcoming advancements for the blockchain. The discussions focused on three main areas of improvement: Electra, PeerDAS, and SSZ.

Electra refers to a series of upgrades to Ethereum’s consensus layer, which coordinates validators on the network. The call mentioned the nearing completion of the code for the next Electra version and the upcoming testing phases.

PeerDAS is aimed at revising the network’s communication system, enabling nodes to process and validate larger volumes of user data. Developers are planning separate testing phases for PeerDAS to ensure its stability before integrating it into the mainnet.

Lastly, the call addressed SSZ, a specification for encoding data. Several improvements related to SSZ are under development, with potential inclusion in a future major upgrade being explored.

Price Outlook

At the time of writing, ETH is trading at $3,400.08, having decreased by 2.08% in the past 24 hours. Despite the price drop, ETH’s trading volume has increased by 30%.