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05/08/24
138
Ethereum Plummets Below $3,000: Whale Accumulates Amid Market Uncertainty
Ethereum’s recent performance has taken a notable hit, falling below the significant $3,000 support level. In the last 24 hours, Ethereum has dropped by over 22%, bringing the current trading price to slightly over $2,100. This decline has left many retail traders contemplating their next steps amidst prevailing uncertainty in the market.
Despite the downturn, on-chain analysis reveals that a prominent investor has viewed the price drop as an opportunity to acquire more Ethereum. This investor, who is a prominent whale, has been progressively building their ETH holdings over the past two months. The latest data indicates that the whale purchased an additional 2,424 ETH, amounting to approximately $7.22 million based on the market price at that time. In total, this whale has accumulated 19,436 ETH, valued at around $68.25 million, since late May, and currently faces over $8 million in unrealized losses.
While this approach may seem risky given the bearish sentiment clouding Ethereum, historical data suggests that the whale’s strategy has been remarkably successful. With a flawless track record since late 2022, this investor has managed to buy low and sell high, generating more than $38 million in profits through tactical trades spanning from late 2022 to mid-2024.
As Ethereum trades at around $2,220, marking an over 33% drop over the past week, substantial liquidations have occurred, with more than $78.72 million in ETH long positions liquidated in just one day. However, the critical $3,000 support level remains significant, supported by over 1.7 million addresses that have previously purchased Ethereum just below this point. This could indicate robust buying interest and potentially serve as a buffer against further declines in the near future.
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