Ethereum, one of the leading cryptocurrencies, finds itself in the midst of a price drop alongside the broader crypto industry. This slowdown was exacerbated by escalating tensions in the Middle East, which shadow of uncertainty on the market. While the majority of cryptocurrencies are experiencing a loss of value, Ethereum does not escape the trend. However, as retail investors panic sell their holdings, on-chain data presents a different picture. Large market whales are seizing the opportunity to accumulate assets, displaying bullish sentiment amid the turmoil.
In particular, on-chain data from Lookonchain showed that an Ethereum whale was accumulating during the price decline. Interestingly, the timeline of the buildup suggests that this whale was in action even before the escalation of tensions in the Middle East.
Ethereum Whales Piling Up During Market Downturn
On-chain transaction tracker Lookonchain has noted both a selling and accumulation trend in different Ethereum whales over the past few days. One of the latest accumulations comes from a whale that has been consistently removed from crypto exchange Binance.
As revealed by Lookonchain, whale “0x4359” withdrew 62,141 ETH worth $202.6 million from Binance over the past five days. This whale's last withdrawal from Binance was less than 12 hours ago, where it withdrew 37,018 ETH worth $120.7 million.
Ethereum, on the other hand, fell from $3,722 to $2,866 over the past five days, representing a 23% price drop. Similarly, 7,300 ETH worth $23.8 million was transferred from Binance to “0xE347”, a newly created whale wallet.
It seems the whales have bought $ETH basically!
Whale “0x4359” removed 37,018 $ETH($120.7 million) #Binance 4 hours ago and this whale retreated 62,141 $ETH($202.6 million) #Binance over the last 5 days.https://t.co/41366OnM5Y
Fresh whale wallet “0xE347” withdrew 7,300 $ETH($23.8 million)… pic.twitter.com/qEtTSYU3Us
– Lookonchain (@lookonchain) April 13, 2024
That said, Lookonchain has also noted a trend of whales selling off their holdings. An example One of these sales came from the whale address “0xaF35” which deposited 6,700 ETH worth $23.65 million on Binance just before the price drop. Importantly, this same whale withdrew 26,698 ETH worth $94.3 million from Binance between February 7 and April 1.
In another social media postLookonchain revealed that four whales dumped 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 accumulation and sales of ETH from different cohorts of whales highlight the contrasting trading strategies among large crypto asset holders. While some are selling off, others are taking advantage of low prices and buying lower.
It would appear that the Whales' accumulation is still outpacing the massive sales of their counterparts at the time of writing. Despite this, a sell-off by retail investors tipped the price balance in favor of the bears. As a result, Ethereum is now trading around the $3,000 price level, which remains a crucial price level.
A continued accumulation of whales could possibly tipping the price of Ethereum on the bullish side as tensions in the global market begin to ease. We could then see Ethereum holding above $3,000 and rising at least until it hits $3,200. Continued selling could lead to further price declines, causing Ethereum to fall below $3,000.
Featured image from Pexels, chart from TradingView
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