Ethereum has struggled to make a name for itself this month. For most of the month, price movements have been fairly calm so far, and the top altcoin is struggling to break the $ 3,600 mark.
This has caused some investors to repeat the bearish behavior – which may not be best in a bull market. This is what you should consider now before investing in Ethereum
The behavior of the great hodlers
Typically, large wallet holders (addresses with 1k to 10k ETH) – be it individual investors, whales or institutions – are known as the trigger for the investment dynamic for the rest. When they buy, others buy; if they sell, someone else sells.
Except for the last 2 months, their behavior is very different. The big hodler buys during a bear market and sells at the first sign of profit.
They did so for the first time in August when they sold their holdings at a time when the ETH price was up 51.21%. Then came September, along with other altcoins where the second generation coin fell 21.69% during its acquisition.
And now that Ethereum is up 20% in October, they’re selling again. The same can be seen in the price movement and RSI shown in the chart below.
Ethereum Hodler behavior | Source: Glassnode
In total, the major wallet owners sold $ 267.8 million in just a few days.
Surprisingly, however, smaller investors did not follow their signals. The metrics have risen cautiously and addresses with 10 to 1k ETH contradict the sales promotions of larger owners.
And their decisions can actually be very profitable.
This month’s gains have allowed Ethereum to get closer to its previous ATH of $ 4,362, just 19% away. Now, although not yet finalized, investors’ profits are already there. Over 87% of all addresses were profitable at the time of writing.
Ethereum profitability | Source: Intotheblock
By now, most of you are likely looking at Ethereum as a solid investment opportunity. But before you do that, watch out for high volatility in the market.
The good news, however, is that Ethereum is neither overbought nor oversold. The RSI is in the bullish neutral territory, indicating strong optimism for the asset and the price could rise if conditions are favorable.
Price action and RSI | Source: TradingView
As the old saying goes, do your own research and invest wisely.
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According to Ambcrypto