Smart money investors continue to accumulate

The so-called upcoming “merger” at Ethereum is a much-discussed topic in the crypto space. Analysts are divided on how the move to proof-of-stake (PoS) could affect the price of Ether (ETH).

ETH/USDT 1-day chart. Source: Trading View

Whales build up before the meltdown

Cryptocurrency news firm Jarvis Labs provides an even deeper look at the recent accumulation of whale ether. The company has the following table postwhich shows the percentage change of whale stocks against the price of ETH.

Whale ether possessions are changing. Source: Twitter

The color of the dots indicates the price of Ether. The chart shows that whale wallets gradually reduced their holdings when the price was above $4,000. They only accumulated again when the price fell below $2,300.

Jarvis Labs explained:

“Whales continue to accumulate ether, their accumulation is constant with an upward trend.”

And it’s not just whales that buy ether by diving, as the chart below shows. on this one to prove red dots indicate whales and small wallets accumulate more.

Divergence of ether. Source: Twitter

Jarvis Labs analysts commented:

“If you just look at the distribution of ether wallets, you can conclude that there has been an increase in the number of whales and an increase in the number of fish (whales and fish seem to be accumulating). Is that because of the merger?

Detachment from Ethereum?

Delphi Digital analysts wondered if the price of Ethereum could decouple from Bitcoin (BTC) before or after the merger. They also predicted that there will “likely be another consolidation for ETH/BTC in the near term.”

ETH/BTC price development. Source: Digital Delphi

One of the key questions this chart raises is what needs to happen for Ether to break free from the “invisible chain” that tied it to Bitcoin for so long.

According to Delphi Digital, the current bullish narrative around “ultra safe money” and ether “melting” could be the very trigger that takes ether out of its correlation with bitcoin price.

Delphi Digital added:

“Post-merger interest in Ether will only increase from now on, largely as more people see the opportunity to earn higher real returns from a deflationary asset. “

Ether staking is gaining momentum

Ether staking statistics. Source:

Even though the price of Ether continues to decline at the moment, data shows that ETH staking on the Beacon Chain continues to increase. Data from Dune Analytics also shows an increase in deposits in Eth2. Additionally, several analysts have commented on how institutional investors and whales could trade Ether in the pre-merger and post-merger phases.

Lido Eth2 soles. Source: Dune Analysis

Overall, the data shows that while Ether is down 42.5% from its all-time high, so-called “smart” investors are still piling up. These investors expect the staking reward percentage to increase and the price to rise once Ether becomes a deflationary asset.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Every investment and transaction involves risk and you should do your research before making a decision.

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