Ethereum Whales Quietly Filled With ETH As The Broader Market Freaked Out
Ethereum collapsed with the market during the latest crash and has yet to recover to previous levels. The crash was marked by sell-offs and liquidations from all quarters, which continued even as the price continued to fall. Fears of a bear market led to this as investors wanted to get out of it before the price fell further. But not everyone followed this trend of dumping.
Whales have always been known to move differently than smaller investors when it comes to the crypto market and this time was no different. While panicked investors sold their holdings at low prices, these whales quietly gobbled up the ETH that was dumped into the market, once again increasing their dominance in the market.
Whales fill ETH
In recent weeks, whales have benefited from the declining market value to buy cryptocurrencies at what can essentially be said to be a discount. The price of Ethereum had fallen to a whopping $2,100 after the crash, leaving even more room for the whales to increase their holdings. Smaller investors had followed suit, but only after whales bought hundreds of millions of dollars worth of ETH.
Related literature | Bitcoin Whales Take Advantage Of Market Crash To Swallow Millions In BTC
During this time, the number of addresses with more than 10,000 ETH in their balance had also increased significantly. These whales had bought a total of more than $500 million worth of ETH in just a few weeks.
ETH recovers to $2,400 after crash | Source: ETHUSD on TradingView.com
This renewed support from whales and smaller investors had slowed the decline of digital assets. But it turned out not to be enough to bring about a recovery to previous values. Despite growing support from these major investors, the market remained in extreme fear, indicating intense investor caution. This has led them to be reluctant to put any more money into the market.
Ethereum struggles to stay afloat
Since the crash to the low $2,100, Ethereum has had a hard time recovering in the market. While a bounce-back triggered by cryptocurrency pioneer bitcoin saw a recovery above $2,400, it hasn’t registered much upward momentum since then.
Related literature | Which cryptocurrencies suffered the worst 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 was promptly taken a beating 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 and more downtrend is expected as whale support wanes.
At the time of writing, the digital asset is trading at $2,461, down 2.97% in the last 24 hours. Trading volume has increased significantly over the same period, but has yet to translate into higher value for the asset.
Featured image from Nairametrics, chart from TradingView.com