Recent price movements within the cryptocurrency market have seen Ethereum experience a major downturn, with the altcoin finally sustaining a break below the critical $3,000 support level. Ethereum has suffered a notable 4.76% decline over the past 24 hours, bringing its current trading price to only above $2,900.
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While retail traders are still scrambling for his or her next move, on-chain data shows an interesting accumulation pattern of ETH by a specific whale entity. This whale, whose strategic moves have historically demonstrated a formidable 100% investment win rate, has been steadily increasing their holdings of ETH for the past two months.
Whale Sees Crash As Buying Opportunity
In keeping with on-chain data noted by Lookonchain on social media platform X, a sensible money whale has been making the most of the recent ETH price fall so as to add to its holdings. As revealed by the on-chain tracker, this whale recently bought one other 2,424 ETH price $7.22 on the time of purchase. This latest acquisition brings the whale’s total purchases to 19,436 ETH price $68.25 million at a mean of $3,511 per ETH since May 29. On the time of writing, the smart money whale is sitting on almost $8 million in unrealized losses.
At first glance, this aggressive buying approach might appear dangerous, especially given the prevailing bearish sentiment surrounding Ethereum. Nonetheless, history suggests they may actually know what they’re doing higher than most. This particular whale boasts a flawless track record with a 100% win rate since November 2022 and seems to know when exactly to purchase and sell Ethereum.
Ethereum is now trading at $2902. Chart: TradingView
Notably, this smart money whale has been buying Ethereum at low points and selling at higher prices between Nov 21, 2022, and May 23, 2024, with a complete profit of greater than $38 million. The whale’s recent purchases, despite the continued market downturn, suggest a level of confidence and insight that has proven accurate up to now.
A wise money with a 100% win rate bought 4,000 $ETH($12.58M) again 5 hours ago!
This smart money bought and sold $ETH 7 times from Nov 21, 2022 and May 23, 2024, buying at low prices and selling at high prices every time, with a 100% win rate and a complete profit of greater than… pic.twitter.com/3fnCkyfmQT
— Lookonchain (@lookonchain) August 2, 2024
What’s Next For Ethereum?
As of the time of writing, Ethereum is trading at $2,900, marking a major decline of 12% over the past seven days. This sharp downturn has triggered substantial liquidations available in the market. In keeping with data from Coinglass, $78.72 million price of ETH long positions were liquidated up to now 24 hours alone.
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While the crypto’s drop below $3,000 is worrisome for investors, bullish hope won’t be lost yet. The $3,000 price point is a critical support level backed by substantial on-chain activity. Data indicates that over 1.7 million addresses acquired Ethereum slightly below this level, highlighting a sturdy area of shopping for interest. This implies $3,000 remains to be a powerful support level for ETH, which could prevent further losses in the approaching week.
Featured image from CNBC, chart from TradingView