Ethereum (ETH), the second-largest cryptocurrency in the world, is facing challenges as its price has continuously consolidated for the last 20 days within a range of $1,700 and $1,600. However, on-chain data indicates that whales are consistently taking advantage of this lower level and heavily accumulating. In simpler terms, investors are buying more Ethereum while its price remains low.
According to data from Santiment, a cryptocurrency analytics platform, it was observed that within a 24-hour period, a significant 260,000 Ethereum was accumulated by whales, worth approximately $425 million. This data was also tweeted by a popular crypto analyst, Ali on X (previously known as Twitter).
However, a page named Whale Alert also noted that in the last 24 hours, approximately 57,678 Ethereum was transferred from an unknown wallet to two different wallets, Coinbase and GateIO, in three separate transactions.
On September 5, 2023, according to Santiment’s data, two large Ethereum (ETH) transactions occurred on Coinbase, each involving 150,000 ETH, making them some of the largest moves in 2023. These transfers stand out as the most significant on-chain activity since June 13. The reasons behind these transfers are unknown, and it’s important to mention that they may not immediately affect the price of Ethereum.
Overall, the condition of the cryptocurrency market is quite confusing due to these two reasons: whales taking advantage of the lower price and heavily accumulating, and on September 5, 2023, Santiment data showed a significant transfer of Ethereum with the reason still undefined. Looking at the Ethereum chart, it is finding support from the trendline and the 200 EMA on the weekly timeframe, and there is also the formation of an ascending triangle pattern observed on the chart.
Ethereum is currently facing significant selling pressure at its crucial support level of $1,600. On the other hand, it has attempted to break through the $1,730 level multiple times. At the moment, ETH is trading at $1,631, with a market cap of $195 billion. It’s uncertain whether large ETH holders can reverse this bearish trend or if there will be further price declines, but it is certain that if Ethereum closes weekly below the 200 EMA, we may see further falls in its price.
The accumulation by the whales is not the first we observed in the realm of cryptocurrency when whales have taken advantage of a price drop. On June 30, 2023, Whales bought 360 million XRP for $170 million when its price fell by 12% from June 22 to June 28 as reported by Todayq News.