ETH sharks on accumulation spree, but how long will it take for bubble to burst?

ETH sharks on accumulation spree, but how long will it take for bubble to burst?

January 13, 2023

By Suzuki Shillsalot

How many are 1,10,100 ETH worth today?

Ethereum sharks accumulate a large amount of ETH, and prices surge.

Data suggests a possible bubble, short-term holders may sell.

A 12 January tweet by Santiment revealed that sharks had accumulated a significant amount of Ethereum [ETH] over the last two months. This led to a surge in ETH’s prices. The trend of ETH accumulation by large holders could also influence overall market sentiment and prices.

Data provided by Glassnode showed an increase in interest from addresses holding over 10 ETH during this period. Moreover, the number of addresses in profit reached a one-month high of 49,079,396.702.

Trouble in paradise?

However, this sudden surge in Ethereum prices could be a bubble, according to data by MAC_D on Crypto Quant. Two indicators show that the current situation is overbought. The first indicator is the Short Term Holder SOPR, which measures the sentiment of short-term investors.

A value greater than or equal to one indicates that short-term investors are making a profit when the overall trend is falling. Thus, large holders or “whale investors” are in a good position to make a profit. The current value for this indicator is 1.007.