As a seasoned researcher with years of experience in the cryptocurrency market, I must admit that the recent price movements of Ethereum have piqued my interest. The downturn below the critical $3,000 support level, followed by the 4.76% decline over the past 24 hours, seems like a familiar pattern in this rollercoaster ride we call crypto.
Over the last day, Ethereum, the alternative cryptocurrency, has faced a substantial drop, falling below the crucial $3,000 support level and experiencing a decrease of approximately 4.76%. This has caused its current trading value to hover slightly above $2,900.
As retail traders continue to deliberate their next steps, data from the blockchain reveals a noteworthy accumulation trend in Ethereum by a specific whale investor. This investor, known for their historically successful strategic decisions with a perfect 100% return rate, has been gradually boosting their Ethereum holdings over the past two months.
Whale Sees Crash As Buying Opportunity
Based on information shared by Lookonchain on platform X, it’s been observed that a ‘smart money’ whale has been capitalizing on the recent drop in ETH prices to increase its holdings. As per the on-chain tracker, this whale recently purchased an additional 2,424 ETH, which was worth approximately $7.22 million at the time of purchase. With this latest buy, the whale now holds a total of 19,436 ETH, valued at around $68.25 million. This equates to an average price of roughly $3,511 per ETH since May 29. At present, the smart money whale has potential losses of nearly $8 million that are yet to be realized.
Upon initial observation, this bold purchasing strategy could seem risky, considering the current pessimistic outlook towards Ethereum. Yet, history indicates that they may possess a superior understanding of the market compared to many others. This specific whale has demonstrated an unblemished record since November 2022, boasting a perfect 100% win rate in their Ethereum transactions, suggesting they know precisely when to buy and sell Ethereum.
Significantly, this shrewd investor, often referred to as a ‘whale,’ has been strategically purchasing Ethereum during its low periods and subsequently selling at increased prices from November 21, 2022, to May 23, 2024. This actionable strategy has generated over $38 million in profits for the whale. The whale’s latest purchases, even amidst the current market slump, indicate a strong faith and insight that has consistently been accurate in the past.
A smart money with a 100% win rate bought 4,000 $ETH($12.58M) again 5 hours ago!
As someone who has been trading cryptocurrencies for several years now, I have learned to appreciate the value of patience and foresight when it comes to making profitable trades. In my experience, one strategy that consistently yields positive results is buying low and selling high, a practice often referred to as “smart money” tactics.
— Lookonchain (@lookonchain) August 2, 2024
What’s Next For Ethereum?
Currently at the time this text is written, Ethereum is being traded for approximately $2,900. This represents a considerable drop of around 12% over the last week. This steep fall has led to a wave of sell-offs in the market, with Coinglass reporting that a massive $78.72 million worth of ETH long positions were liquidated within just the past day.
As an analyst, I find it concerning to see Ethereum’s dip below $3,000, but there may still be reasons for optimism. The $3,000 price mark represents a significant support level due to its connection with substantial on-chain activity. In fact, data suggests that over 1.7 million wallets have acquired Ethereum just beneath this threshold, indicating a robust zone of buying interest. This suggests that the $3,000 level remains a strong foundation for ETH, which may help prevent additional declines in the near future.
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2024-08-04 15:04