The market decline has led to retail panic, and Ethereum whales continue to buy on a buying spree
Ethereum, one of the leading cryptocurrencies, found itself in the middle of falling prices along with the broader crypto industry. This downturn has been exacerbated by escalating tensions in the Middle East, casting a shadow of uncertainty over markets. Since most cryptocurrencies have experienced a drawdown in value, Ethereum is not immune to this trend. However, despite the panic selling of their holdings by retail investors, the on-chain data presents a different picture. The big players in the market are seizing the opportunity to accumulate assets, showing bullish sentiment amid the turmoil.
On-chain data shows that Ethereum whales are accumulating during price declines. Interestingly, the accumulated timeline suggests that this whale began to operate even before the escalation of tensions in the Middle East.
On-chain transaction trackers have noticed a sell-off and overweight trend from different Ethereum whales over the past few days. One of the latest accumulations comes from a whale that has been withdrawing money from a certain cryptocurrency exchange.
It was revealed that the whale "0x4359" had withdrawn 62,141 ETH worth $202.6 million from an exchange in the past five days. The whale's last withdrawal from an exchange was less than 12 hours ago, when they withdrew 37,018 ETH, worth $120.7 million.
Ethereum, on the other hand, fell 23% from $3,722 to $2,866 in the last five days. In a similar way, 7,300 ETH worth $23.8 million was transferred from an exchange to the newly created whale wallet "0xE347".
Nonetheless, on-chain transaction trackers have also noticed a trend of whales selling their holdings. An example of this type of sell-off comes from the whale address "0xaF35," which deposited $23.65 million worth of 6,700 ETH into an exchange before the price dropped. Notably, the whale withdrew 26,698 ETH, worth $94.3 million, from an exchange between February 7 and April 1.
It was revealed that the four whales sold 31,683 ETH, worth $106 million, during the price drop.
The accumulation and sell-off of ETH by different whale groups highlights the very different trading strategies among the big holders of crypto assets. While some are selling, others are taking advantage of the low price to buy the dip. Whales' overweight still appears to have outpaced the sell-off by its peers. Nonetheless, the sell-off by retail investors has made the price move in favor of the bears. As a result, Ethereum now finds itself trading at around $3,000, which remains a key price level.
As tensions in global markets begin to subside, the continued accumulation of whales could eventually tip Ethereum's price towards the bulls. Then, we could see Ethereum sustain above $3,000 and soar to at least $3,200. The continued sell-off could lead to a further drop in price, causing Ethereum to fall below $3,000.
(Source: Scott Matherson)
