ethereum, a leading cryptocurrency, is in the midst of a price crash along with the broader cryptocurrency industry. This crisis has been exacerbated by the escalation of tensions in the Middle East, which has generated aethereum-etfs-unlikely-get-sec-approval/” target=”_blank” rel=”nofollow”> shadow of uncertainty about the market. As most cryptocurrencies experience a loss in value, ethereum is not immune to the trend. However, as retail investors panic and sell their holdings, on-chain data paints a different picture. The market's big players are taking the opportunity to accumulate assets, showing bullish sentiment amid the turmoil.
Notably, on-chain data from Lookonchain has shown an ethereum whale piling up during the price drop. Interestingly, the chronology of the buildup suggests that this whale has been in action even before the escalation of tensions in the Middle East.
ethereum Whales Pile During Market Crash
On-chain transaction tracker Lookonchain has noticed a trend of both liquidation and accumulation of different ethereum whales in recent days. One of the latest accumulations came from a whale that has been making consistent withdrawals from the Binance crypto exchange.
As Lookonchain revealed, the whale “0x4359” has withdrawn 62,141 eth worth $202.6 million from Binance in the last five days. This whale's last 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 just $2,866 in the last five days, representing a 23% price drop. Similarly, 7,300 eth worth $23.8 million were transferred from Binance to “0xE347,” a newly created whale wallet.
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It seems that the whales bought twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$eth in the background!
Whale”0x4359″ retired 37,018 twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$eth($120.7 million) twitter.com/hashtag/Binance?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#Binance 4 hours ago and this whale has withdrawn 62,141 twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$eth($202.6 million) twitter.com/hashtag/Binance?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#Binance in the last 5 days.https://t.co/41366OnM5Y
Cool Whale Wallet”0xE347″ withdrew 7,300 twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$eth(23.8 million dollars)… pic.twitter.com/qEtTSYU3Us
— Lookonchain (@lookonchain) twitter.com/lookonchain/status/1779160896675479903?ref_src=twsrc%5Etfw” rel=”nofollow”>April 13, 2024
That said, Lookonchain also noticed a trend of whales selling their properties. x.com/lookonchain/status/1778986623021322629″ target=”_blank” rel=”nofollow”>An example of such sales came from the whale address “0xaF35”, which deposited 6,700 eth worth $23.65 million on Binance immediately 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 x.com/lookonchain/status/1779036464791351741″ target=”_blank” rel=”nofollow”>another social media postLookonchain revealed that four whales dumped 31,683 eth worth $106 million during the price crash.
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Total crypto market cap is currently at $2.261 trillion. Chart: TradingView
What's next for ethereum?
The accumulation of eth and sell-offs by different cohorts of whales highlight contrasting trading strategies among large holders of the cryptoasset. While some sell, others take advantage of the low prices and buy on the dip.
It would appear that the whale buildup is still outpacing the selloff of its counterparts at the time of writing. Despite this, a sell-off by retail investors has tilted 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.
TO continuous accumulation of whales eventually could tilt ethereum price side with the bulls as tensions in the global market begin to ease. We could then see ethereum stay above $3,000 and rise to at least $3,200. A continued sell-off could lead to a further drop in prices, causing ethereum to fall below $3,000.
Featured image from Pexels, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
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