An Ethereum whale took advantage of a recent market-wide sell-off, adding $39 million in ETH. The sell-off was merely the result of US airstrikes on Iran and was, albeit sadly, a short-term buying opportunity for the savvy high-net-worth investor. While this move is a bullish signal for Ethereum long-term given how much it has underperformed BTC in recent weeks, this is an interesting development.
On-chain data shows that Ethereum wallets holding 10,000 ETH or more have been increasing their net positions. This trend happened not just on the day of the US airstrikes, but in the days leading up as well. This pattern of accumulation further highlights a strategic accumulation trend among large Ethereum wallets.
Whale Activity During the Dip
On June 22, the Ethereum whale with wallet address 0x7355…213 moved 20 million MATIC tokens ($8.86 million at today’s price). They purchased about 9,400 ETH (worth roughly $39 million) in two large trades. Ethereum whales just pulled off one of their biggest moves yet on June 21. What’s more, they bought more than 116,893 ETH—worth an impressive $265.30 million—echoing a larger market sentiment toward this trend. At present, the whale’s combined Ether holdings reach $330 million.
Technical Analysis and Potential Rebound
Even with Ethereum coming off as one of the worst-performing top cryptos of late, recent technical analysis would indicate that a rebound could be on the horizon. Ether price must hold above a key ascending trendline. With this position, we would expect a big price bounce within the next few days.
Indeed, the last bounce from the same support line gave way to a 55% rally from late April-early May 2023. This bullish reallocation trend has historically resulted in ETH recovering back towards the $2735 resistance. Such a move would mean a 25% gain compared to where it’s trading right now.
Market Sentiment and Future Outlook
Whales loaded up with a total of $263.5 million in ETH during the recent price drop. This unprecedented move is a testament to the overwhelming market confidence large investors are placing. The Ethereum whale's substantial purchase, coupled with positive technical indicators, paints a picture of strategic investment rather than panic selling.
