Ethereum Whales Quietly Filled Up On ETH While Broader Market Panicked

Ethereum crumbled with the market during the last crash and is yet to recover to previous levels. The crash was characterized by sell-offs and liquidations from all angles, which continued even when the price dumped further. Fear of a bear market sparked this as investors wanted to get out before the price fell further. But not everyone followed this trend of dumping.

Whales have always been known to move differently from smaller investors when it comes to the crypto market and this time was no different. While investors panic sold their holdings at low prices, these whales quietly gobbled up the ETH being dumped on the market, increasing their dominance in the market once again.

Whales Fill Up On ETH

In the last few weeks, whales have taken advantage of the declining market values to buy cryptocurrencies at what can be essentially said to be a discount. The price of Ethereum had dumped as low as $2,100 following the crash, leaving even more room for the whales to increase their holdings. Smaller investors had followed suit but only after whales had bought hundreds of millions of dollars worth of ETH.

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Related Reading | Bitcoin Whales Take Advantage Of Market Crash To Gobble Up Millions In BTC

During this time, the number of addresses holding more than 10,000 ETH on their balances had also increased significantly. These whales had altogether purchased more than $500 million in ETH in only a couple of weeks.

Ethereum price chart from TradingView.com

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ETH recovers to $2,400 post-crash | Source: ETHUSD on TradingView.com

This renewed support from whales and smaller investors had worked to slow down the decline of the digital asset. But proved to be not enough to spark a rebound back up to previous values. Despite growing support from these large investors, the market has remained in extreme fear, pointing to intense wariness from investors. This has caused them to hold back from putting any more money in the market.

Ethereum Struggles To Stay Afloat

Since the crash towards the low $2,100, Ethereum has had a hard time recovering in the market. While a bounce-back that was triggered by pioneer cryptocurrency bitcoin saw it recover above $2,400, it has not recorded much in the way of upward momentum since then.

Related Reading | Which Cryptocurrencies Suffered The Worse Collapse Since All-Time Highs?

Indicators point to the week playing out with continued low momentum for the second-largest cryptocurrency by market cap. It had previously tested the $2,700 point on Wednesday but had promptly taken a beating down that brought it back to $2,400.

ETH is trading below its 5-day, 20-day, 100-day, and 200-day moving averages for the first time in a year. Market sentiments remain bearish with more downtrend expected to come as support from whales taper off.

As of the time of writing, the digital asset is trading at $2,461, down 2.97% in the last 24 hours. Trading volume is up significantly over the same time period but is yet to translate into a higher value for the asset.

Featured image from Nairametrics, chart from TradingView.com

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Ethereum Retests Support as ETH Whales Remain Patient While Altcoin Market Slumps

In the past 24 hours, the cryptocurrency market has faced a steep correction, with Bitcoin (BTC) losing over 3%, and Ethereum (ETH) dropping over 5%. Bitcoin’s price dropped to lows of $22,190, while Ethereum tested its support at $600. 

Ethereum retests support.jpg

The cryptocurrency market has been riding off Bitcoin’s bullish momentum, with many altcoins rallying 15 to 30% in the past week. However, Bitcoin and most large cap altcoins retraced in the past 24 hours. 

In a matter of hours, Ethereum traded from around $645 and dropped to lows of $597, breaking its support at $600. However, ETH managed to find strength around its support level at $600, and quickly recovered to trade above it. Ethereum has recovered slightly and is now trading at $612.

Crypto analytics firm Santiment’s data showed that the Ethereum addresses holding 1-100 ETH are seeing their lowest collective amounts this month. However, smaller ETH addresses are still growing, while Ethereum whales, holding more than $100,000 are staying patient. Santiment explained further:

“The amount of #Ethereum continues changing hands, as the # of addresses with 1-100 $ETH are holding their lowest collective amounts this month. However, smaller addresses are growing encouragingly, and whales with at least 100K ($61.6M) staying patient.”

ETH Whales remain patient.jpeg

A cryptocurrency trader recently commented on Ethereum’s retest of the support level, saying:

“The retest was bullish for $ETH imo. Send it now to $700.”

ETH retest.jpeg

Another cryptocurrency analyst suggested that Ethereum is on its way to flip its resistance level into a support level:

“$ETH. Retesting ASCending triangle breakout, trying to flip it as support, something that we already saw back in Nov.”

ETH Flips support.png

However, not all analysts believe that Ethereum could just see a straight surge. A crypto analyst believes that Ethereum is bullish, but ETH could see a correction in the coming months. The analyst explained:

“$ETH – Is bullish but…. I’m looking for a correction over the coming weeks and months (much depends on BTC of course and ETHBTC) Weekly Stoch RSI has been nailing tops on eth. ‘Its not the thinking that makes the money, it’s the sitting and waiting that makes the money.’”

Image source: Shutterstock

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Bitcoin (BTC) $ 26,391.07 0.78%
Ethereum (ETH) $ 1,594.29 0.95%
Litecoin (LTC) $ 64.85 0.73%
Bitcoin Cash (BCH) $ 212.12 2.94%