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Ethereum's 39% Price Decrease Is Accompanied by Large-Scale Whales' Purchases

Fri, 07/01/2022 - 16:03
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Gamza Khanzadaev
Ethereum whales add 1.1% of entire ETH supply to their bags amid significant price decrease
Ethereum's 39% Price Decrease Is Accompanied by Large-Scale Whales' Purchases
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Holders of large Ethereum positions have been actively accumulating more tokens over the past three weeks, according to data from Santiment. Despite the growing capitulation in the cryptocurrency market, during which ETH lost nearly 40% in value, wallets with balances between 100 and 100,000 ETH put about 1.1% of the token's total supply into their bags.

The trend started on June 7, exactly two days before ETH left the $1,980-$1,725 range and collapsed more than 50% in a moment, reaching its lowest value in a year and a half at $881. Then, a rebound was expected, and at the moment the rate of ETH fluctuates between $1,000 and $1,300, where it is actively accumulated by the whales.

Is Ethereum (ETH) already cheap enough?

Despite the fact that Bitcoin is considered the main cryptocurrency, many people doubt the possibility of its large-scale application and give it the role of a means of saving money, or gold 2.0, a provider of technology. Ethereum, on the contrary, assumes this role and in a bright decentralized future appears to be the main technological pavement. This raises the question of whether ETH has fallen in value enough to be picked up.

The question is ambiguous. On the one hand, ETH has already corrected 78% from its peak price of $4,860 in November. On the other hand, we can see that despite a short stay in the area of $800-900, the rate of ETH is still dangerously close to an important support level, and another move down is not excluded at all. Moreover, it seems that an additional 7-10% from November highs is needed to make a full market cycle and start a new one.

Source: TradingView
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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.