Ethereum Miners Are Dumping Their Assets
According to Santiment, an on-chain analytics firm, Ethereum miners have been selling large amounts of their holdings across cryptocurrency exchanges. Their sell-off comes at a time when base layer activity is decreasing and DeFi FOMO amongst investors tapering.
Miners in Proof-of-Work protocols play a critical role in confirming and keeping the network safe. For their involvement, the platform incentivizes their activity and resource sacrifice. Like in Bitcoin and other networks, Ethereum miners compete for coins released every minute. Therefore, whether they hold or sell to cover operating expenses can be used as a gauge to judge their price forecast. Most are whales. If they hold or “accumulate”, ETH prices may recover in the immediate to medium term. However, a dump points to their pessimism on price; a move that can spark a market sell-off.
Impact on the ETH Price:
Bearish. The Actions of miners have a huge bearing on the price trajectory. Coinciding with Santiment’s analysis, the ETH price has been wavy, dropping below $400 even in the background of positive news around Eth2 and other base-layer relieving news.
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