Ethereum Whales Go On Buying Spree As Market Crash Leaves Retail Panicking
April 14 2024 - 3:00PM
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Ethereum, one of the leading cryptocurrencies, finds itself amidst
a price decline alongside the broader crypto industry. This
downturn has been exacerbated by escalating tensions in the Middle
East, casting a shadow of uncertainty over the market. As the
majority of cryptocurrencies experience a bleed in value, Ethereum
is not immune to the trend. However, while retail investors
panic-sell their holdings, on-chain data presents a different
picture. Big player whales in the market are seizing the
opportunity to accumulate assets, displaying a bullish sentiment
amid the turmoil. Related Reading: Bitcoin Below $70,000: Is $80K
Still Possible, Or Is The Rally Over? Particularly, on-chain data
from Lookonchain has shown an Ethereum whale accumulating during
the price decline. Interestingly, the timeline of accumulation
suggests that this whale has been in action even before the
escalating tensions in the Middle East. Ethereum Whales Accumulate
During Market Downturn On-chain transaction tracker Lookonchain has
noted both a selloff and accumulation trend from different Ethereum
whales in the past few days. One of the latest accumulations came
from a whale that has been on constant withdrawals from crypto
exchange Binance. As revealed by Lookonchain, whale “0x4359” has
withdrawn 62,141 ETH worth $202.6 million from Binance in the past
five days. This whale’s latest withdrawal from Binance was less
than 12 hours ago, where they withdrew 37,018 ETH worth $120.7
million. Ethereum on the other hand, has fallen from $3,722 to as
low as $2,866 in the last five days, representing a 23% price
decline. In a similar manner, 7,300 ETH worth $23.8 million were
transferred from Binance into “0xE347,” a newly created whale
wallet. It seems that whales bought $ETH at the bottom!
Whale”0x4359″ withdrew 37,018 $ETH($120.7M) from #Binance 4 hrs ago
and this whale has withdrawn 62,141 $ETH($202.6M) from #Binance in
the past 5 days.https://t.co/41366OnM5Y Fresh whale wallet”0xE347″
withdrew 7,300 $ETH($23.8M)… pic.twitter.com/qEtTSYU3Us —
Lookonchain (@lookonchain) April 13, 2024 That said, Lookonchain
also noted a trend of whales selling off their holdings. One
example of such selloffs came from whale address “0xaF35” who
deposited 6,700 ETH worth $23.65 million into Binance immediately
before the price drop. It’s important to note that this same whale
withdrew 26,698 ETH worth $94.3 million from Binance between Feb. 7
and April 1. In another social media post, Lookonchain revealed
four whales dumping 31,683 ETH worth $106 million during the price
drop. Total crypto market cap is currently at $2.261 trillion.
Chart: TradingView What’s Next For Ethereum? The ETH accumulation
and selloffs from different whale cohorts highlight the contrasting
trading strategies between large holders of the crypto asset. While
some are selling off, others are taking advantage of the low prices
and buying the dip. It would seem the whale accumulation is
still outweighing selloffs from their counterparts at the time of
writing. Despite this, a selloff from retail investors has tipped
the price action in favor of the bears. As a result, Ethereum now
finds itself trading around the $3,000 price level, which remains a
crucial price level. Related Reading: Uniswap Bloodbath: UNI Price
Crashes 16% On SEC Lawsuit Fears A continued accumulation from
whales could eventually tip the price of Ethereum to the side of
the bulls as tensions in the global market start to subside. We
could then see Ethereum hold up above $3,000 and surge upwards at
least till it reaches $3,200. A continued selloff could lead to a
further price decline, causing Ethereum to break below $3,000.
Featured image from Pexels, chart from TradingView
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