Connect with us
Active Currencies 14910
Market Cap $2,252,012,423,900.10
Bitcoin Share 50.67%
24h Market Cap Change $1.08

Ethereum: Why whale accumulation may not deter a price plunge

2min Read

It is likely that Ethereum will continue to compress and trade around the same $1,600 in the short term. But will ETH drop below $1,200 in the coming months?

Ethereum: Why whale accumulation will not deter a price plunge

Share this article

  • Despite its price compression, ETH hit its highest whale activity in 16 weeks.
  • If history repeats itself, ETH might drop to 2019 lows.

Lately, Ethereum [ETH] has been witnessing a significant increase in network activity and accumulation. And the suspects in this regard have been whales who have found the coin dip to $1,650 as a chance to scoop up ETH at a lower price.


Read Ethereum’s [ETH] Price Prediction 2023-2024


Cult-like whales for ETH

According to Santiment, ETH’s whale activity reached its highest in 16 weeks due to the increase in this venture. Also, addresses holding between 10 and 10,000 ETH rose to 355,000 while ETH $100,000 transactions also spiked.

When something of this nature happens, it means that these large addresses are convinced that ETH’s price action in the long term would be profitable. On two separate occasions, AMBCrypto had reported how whales have increasingly interacted with Ethereum.

However, the presence of these large investors has not been felt with the ETH value. At press time, ETH consolidated, making a 1.70% drop in the last 24 hours. And according to on-chain, Ethereum’s price volatility fell to 0.009.

Therefore, it is likely that ETH will continue to compress and trade around the same $1,600 in the short term.

ETH price and Ethereum price volatility

Source: Santiment

However, this accumulating trend has led to discussions about whether it can shield the cryptocurrency from another potential price plunge. Despite the increased accumulation, various factors indicate that Ethereum might still be vulnerable to capitulation.

Will ETH fall back to $1200?

One person who shared this sentiment was Benjamin Cowen, the CEO and co-founder of Into The Cryptoverse. According to Cowen, ETH’s market structure was similar to that of the summer of 2019 when the price dropped about 30%.

Cowen also went ahead to compare 2023’s Year-To-Date (YTD) performance with 2019. While doubling down that history would repeat itself, Cowen noted that,

“ETH closing below the yearly open (like it did in 2019) would put it below $1195.”

Interestingly, most comments from the analyst’s post on X (formerly Twitter) seemed to agree with his projection. For some, ETH would surely drop to $1,200.

However, there were a few who argued that 2019 was different from 2023 because Decentralized Finance (DeFi) adoption was rarely visible four years back. And now that Ethereum has the DeFi ecosystem backing, history may not repeat itself.


Is your portfolio green? Check the ETH Profit Calculator


At the time of writing, ETH’s weighted sentiment was down to 1.135. The weighted sentiment considers the perception and commentary market participants have toward an asset.

Ethereum weighted sentiment and ETH price

Source: Santiment

Therefore, the decline suggests that the broader market does not view ETH as a cryptocurrency that could be profitable anytime soon.

Share

Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.