Ethereum (ETH) is going down, yet whales are still accumulating large amounts of the cryptocurrency in the market. This indicates increased confidence in the future of the cryptocurrency. Key levels are being eyed as an indicator of the next move.
At the time of writing, ETH is trading at $2,918.76, with a 24-hour trading volume of $25.75 billion and a market capitalization of $353.46 billion. The ETH declined 0.77% over the last 24 hours, reflecting minor downward pressure amid sustained accumulation by large investors.
Recent on-chain activity also suggests that the top investors are actively accumulating their holdings. Crypto analyst Crypto Patel shared insight that there were significant purchases by BitMine, a wallet managed by the team at Fundstrat, headed by Tom Lee.
Yesterday, BitMine staked an extra 171,264 ETH worth $503 million, totaling their staked holdings to 1,943,200 ETH or $5.71 billion.
Additionally, BitMine bought 34,954 ETHs valued at $105.5 million at an average price per ETH of $3,018 from the exchanges Kraken and BitGo on January 22nd. BitMine currently holds a total of 4,237,990 ETHs, which is approximately 3.51% of the total supply at an average price per ETH of $3,209.
Also Read | Ethereum Whale Activity Spikes, Raising Short-Term Market Questions
Furthermore, another analyst, More Crypto Online, noted that Ethereum is currently in a state of sideways movement, where buyers are attempting to put in a bottom.
Another dip in Ethereum’s price might occur before a potential rally upwards. A solid breakout above $3,072 might spark a rally in ETH’s price.
The presence of a notable buildup in whales for Ethereum accumulation points to the fact that ETH could push to resistance zones, leading to a ripple effect on investors.
Investors should closely monitor on-chain data as well as price movements. Although the accumulation trend among large holders suggests increased confidence, the current situation remains unstable, with no promise that the past will determine the future.
Also Read | Ethereum (ETH) Drops 6% as Renewed Selling Pressure Hits Crypto Markets
Also read: Why Ethena risks $0.13 drop despite 118M ENA whale buys
