Ethereum Reaches $3,200 as Shark Investors Intensify Buying Activity

Ethereum has recently experienced a notable recovery, with on-chain data indicating that shark-sized investors are actively engaging in significant purchasing activities.

Key Takeaways

Ethereum’s price has surged to approximately $3,200.
Since mid-November, shark investors have accumulated 450,000 ETH, valued at roughly $1.4 billion.
The Supply Distribution of Ethereum sharks shows a trend of increasing holdings.
A rise in network activity indicates growing interest in Ethereum.
Currently, Ethereum's price stands at around $3,185, marking a 5% increase over the past week.

Ethereum

Ethereum Shark Accumulation Increased by 450,000 ETH Since November

Data from on-chain analytics company Santiment reveals a recent uptick in the Ethereum holdings of shark investors. The key metric here is “Supply Distribution,” which reflects the total amount of ETH held by various wallet groups.

For our purposes, we're focusing on wallets containing between 1,000 and 10,000 ETH. In today’s market, this translates to values ranging from approximately $3.2 million to $32 million. Investors in this bracket are termed as "sharks." Although they are not as influential as "whales" (those holding over 10,000 ETH), their actions can significantly impact the market.

As shown in the chart from Santiment, the recent behavior of Ethereum sharks has leaned towards accumulation.

Ethereum Shark Supply

Source: Santiment on X

During the decline in Ethereum prices in November, the Supply Distribution for sharks decreased. However, as the market began to stabilize, this trend reversed. Between November 18 and December 2, these sharks added a staggering 450,000 ETH—an amount equivalent to about $1.4 billion—into their wallets. This significant increase in holdings coincided with Ethereum’s price recovery.

Despite a sharp price drop at the start of December, these large investors continued to increase their positions. This persistence might be one reason behind the rapid bullish momentum Ethereum has experienced. Another contributing factor is the rise in Network Growth, another important on-chain indicator captured in the chart. This metric tracks the number of new addresses that are formed and become active on the Ethereum network daily.

A wallet is classified as “online” when it participates in transactions on the blockchain. Consequently, Network Growth monitors the newly active addresses initiating their first transfers.

The graph indicates a recent spike in this metric, reaching a peak of 190,000 new addresses. Typically, increased network activity signals a promising outlook for market rallies as it points to growing interest and engagement with the network.

However, it’s important to note that an overwhelming influx of attention can have adverse effects. It remains to be seen whether shark investors will continue their purchasing activities in the near future and whether investor FOMO (Fear of Missing Out) will maintain at manageable levels.

Current ETH Price

As of now, Ethereum is trading around $3,185, reflecting an increase of more than 5% in the past week.

Ethereum Price Chart

Source: ETHUSDT on TradingView

In summary, Ethereum demonstrates a robust recovery driven by strong accumulation from shark investors, combined with rising network activity, hinting at a potentially positive price outlook.