Ethereum whales continue to buy as the market crash sends retail panic.
Ethereum, one of the leading cryptocurrencies, is experiencing a price decline along with the broader cryptocurrency industry. This downturn has been exacerbated by rising tensions in the Middle East, casting a shadow of uncertainty over markets. Ethereum is not immune to this trend, as the majority of cryptocurrencies experience declines in value. But while retail investors are selling off their holdings, on-chain data presents a different picture. The market’s big players, whales, are showing optimism despite the chaos and are seizing opportunities to accumulate assets. Related Reading: Bitcoin Below $70,000: Is $80,000 Still Possible, or Is the Rally Over? In particular, Lookonchain’s on-chain data shows Ethereum whales accumulating during price declines. Interestingly, the timeline of accumulation suggests that these whales have been active since before tensions in the Middle East escalated. Ethereum whales accumulate during market downturn On-chain transaction tracker Lookonchain has pointed out both selling and accumulating trends of various Ethereum whales over the past few days. One of the most recent accumulations came from a whale that had been continuously withdrawing money from cryptocurrency exchange Binance. As revealed by Lookonchain, whale “0x4359” withdrew 62,141 ETH worth $202.6 million from Binance over the past five days. The whale recently withdrew 37,018 ETH worth $120.7 million from Binance in less than 12 hours. On the other hand, Ethereum fell from $3,722 to $2,866 over the past five days, representing a 23% price decline. In a similar manner, 7,300 ETH worth $23.8 million was transferred to a newly created whale wallet ‘0xE347’ on Binance. Looks like a whale bought $ETH at the bottom! Whale”0x4359″ withdrew 37,018 $ETH ($120.7M) from #Binance 4 hours ago and this whale withdrew 62,141 $ETH ($202.6M) from #Binance in the last 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 has also noticed a trend of whales selling off their holdings. One example of such selling came from whale address “0xaF35,” who deposited 6,700 ETH worth $23.65 million on Binance just before the price drop. It is important to note that this same whale withdrew 26,698 ETH worth $94.3 million from Binance between February 7 and April 1. In another social media post, Lookonchain revealed that four whales dumped 31,683 ETH worth $106 million during the price drop. Currently, the total cryptocurrency market capitalization is $2.261 trillion. Chart: TradingView What’s next for Ethereum? The accumulation and selling of ETH by different groups of whales highlights the contrasting trading strategies among large holders of the cryptocurrency asset. Some sell while others take advantage of low prices to buy the dip. As of this writing, whale accumulation still appears to be greater than counterparty selling. Nonetheless, selling by retail investors resulted in price movements that favored the bears. As a result, Ethereum is now trading around the $3,000 level, a critical price level. Related Read: Uniswap Bloodbath: UNI Price Drops 16% on SEC Lawsuit Concerns. Continued accumulation from whales could eventually tip the Ethereum price towards the bulls as tensions in global markets begin to subside. We will then see Ethereum maintain above $3,000 and rise until it reaches at least $3,200. Continued selling could lead to price declines, sending the Ethereum price below $3,000. Featured image from Pexels, chart from TradingView
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