The number of Ethereum whale transactions above $ 100,000 has seen a rapid increase in the past few days, reaching levels seen in January 2018, just after ETH set a record of $ 1,440. This is a data retrieved from the observations made by the Santiment team, who shared their analysis through the following description and accompanying graph.
The amount of Ethereum whale transactions (worth over $ 100,000) has reached levels not seen since January 2018 this week. After reaching an All-Time High of $ 4,358 just 9 days ago, ETH fell to $ 2,015 (down -53.8%) in just one week.
Analysis by Santiment indicates that Ethereum has lost more than 50% of its earnings since it hit an all-time high of $ 4,372 on May 12.
It should be noted that Ethereum suffered a similar fate in January 2018 after setting the all-time high of $ 1,440 for the bull season in question. What happened back then was that Ethereum formed a double-peak pattern before dropping 47.5% to $ 755. The chart below highlights the price action in January 2018 even more.
The probability of Ethereum to rise to $ 4,372 has also increased due to the fact that the correlation of ETH with Bitcoin is once again rising, as seen in the graph below, courtesy of Coinmetrics.
An increasing correlation between Ethereum and Bitcoin means that ETH will follow where BTC goes. This relationship between the two digital assets is best exemplified by last week’s volatility, when Bitcoin dropped from $ 41,000 to $ 30,000 on Wednesday and from $ 41,000 to $ 33,488 earlier today. In the same period, Ethereum dropped from $ 3,400 to $ 1,888 on Wednesday and from $ 2,990 to $ 2,100 earlier today.
Therefore, if Bitcoin entered a bear market, Ethereum will also enter a bear market and peak at $ 4,372.