Ethereum (ETH), the world’s second-largest cryptocurrency, has fallen nearly 15% since reaching an all-time high above $4,800 last week. Despite the fact that the ETH price is under pressure, the ETH whales continue to devour supplies.
However, an interesting supply war is taking place between the ON and OFF whale addresses. The top ten non-exchange whale addresses continue to grow in size, while the top ten exchange whale addresses’ holdings are shrinking. According to Santiment, an on-chain data provider:
Ethereum’s top ten non-exchange addresses are growing in size, while the top ten exchange addresses are shrinking. The top ten non-exchange vs. exchange whale addresses now have a record 5.16x the amount of $ETH, which is a great sign.
By the end of the year, the price of Ethereum (ETH) will have risen by 300 percent.
Raoul Pal, a former Goldman Sachs hedge fund manager and crypto evangelist, appears to be extremely bullish on Ethereum. Raoul Pal predicts a 300 percent price increase in ETH over the next six weeks, or by the end of the year.
Pal adds a caveat in his subsequent tweet: “I don’t expect perfection, but with all the other analysis I’ve done, something like a 100 percent to 300 percent rally into year-end is highly probable.” Nothing is certain. After that, it’s a tough call, but I believe it will elongate and result in significantly higher prices.”
As of press time, Ethereum (ETH) was trading 2.84 percent lower at $4,235, with a market cap of just under $500 billion. The ETH price may fall further from its current levels, but many analysts believe it will find strong support at $4000.
The Ethereum blockchain recently underwent a significant upgrade known as the London hardfork. To address the rising gas fee, the hardfork added an ETH burning mechanism. This has also contributed to the decrease in the supply of ETH. Indeed, the rate of ETH burning has surpassed the rate of ETH production on the Ethereum blockchain, transforming ETH into a scarce asset.