Ethereum Wells go on a buying spree when the price of ETH drops
Ethereum, the second-largest by market capitalization, has faced a turbulent period, with its price falling to a level not seen in three years against bitcoin.
However, in the midst of this market volatility, a remarkable trend has emerged – deep-pocketed investors, often known as “whales”, are strategically accumulating Ethereum.
TLDR
Ethereum's price has experienced a significant decline, with ETH nearing a 3-year low against Bitcoin. Amidst this price decline, Ethereum whales are strategically hoarding ETH, showing their faith in the cryptocurrency's potential. One popular whale known as “0x435” earned 23,790 ETH during the price period, worth $70 million. Hong Kong has approved the launch of Ethereum and Bitcoin exchange-traded funds (ETFs), which could boost institutional adoption. Analysts suggest that current Ethereum price levels may present a buying opportunity before ETFs launch.
The recent decline was significant, with the Ethereum price per Bitcoin (ETH/BTC) falling to 0.048 BTC, a level seen at the end of May 2021.
Despite this decline, several key technical indicators are flashing signs, and some analysts are expecting potential gains for the ETH/BTC pair in the future.
A famous whale known as “0x435” took advantage of the opportunity to get a large amount of Ethereum during the price. With an investment of 70 million dollars, this whale earned 23,790 ETH when Ethereum reached 2,930 dollars.
However, this was not a spur-of-the-moment decision. Rather, it was part of a calculated strategy that unfolded over several days, including significant transactions and withdrawals from both centralized exchanges such as Binance and decentralized exchanges.
Despite the recent 8% correction in $ETH price (24H), whales are still buying $ETH!
1. Whale 0x435 spent 70M$ USDC to buy 23,790 $ETH for ~$2,942 4 hours ago:
• In total, the whale accumulated 60,808 $ETH ($191M) from #Binance and DEX in the last 15 hours, after each… pic.twitter.com/ujZRULGAkX
— Spot On Chain (@spotonchain) April 14, 2024
On-chain analytics firms, such as Spot on Chain and Lookonchain, have provided insights into the volume and timing of these whaling transactions, revealing a broader pattern of strategic stockpiling amid market turbulence.
These whales do not work alone; They are part of a broader trend that suggests institutional players, or sophisticated investors, are strategically positioning themselves in anticipation of future market movements.
This whale restocked 1,000 $ETH($3.15M) from #Binance at the bottom and collected 8,300$ETH($25.12M) after the market crashed. pic.twitter.com/bONURSKbyl
— Lookonchain (@lookonchain) April 15, 2024
The broader context of Ethereum's price movement adds another layer to this intractable saga. Ethereum's three-day decline, from a high of $3,617 to a low of $2,850 on April 13, highlights the volatility and uncertainty in the cryptocurrency market.
However, amid the stormy seas, Ethereum has managed to recover a bit, climbing to $3,107 as of press time, though it is still down 6.05% in the last 24 hours.
Hong Kong ETFs
Hong Kong has set new conditions as the first jurisdiction to allow trading in Bitcoin and Ethereum exchange-traded funds (ETFs).
Hong Kong's Securities and Futures Commission (SFC) has licensed several prominent financial corporations, including China Asset Management, Bosera Capital and Hashkey Capital Limited, to establish these ETFs.
With the US Securities and Exchange Commission (SEC) currently reviewing similar applications, Hong Kong has taken the lead in this space.
