Ethereum Whales on $2.45 Billion Buying Spree Amid Market Volatility

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As an experienced analyst, I find the recent buying spree of Ethereum whales quite intriguing. In just three short weeks, they managed to accumulate over 700,000 ETH, worth a staggering $2.45 billion. This massive purchase occurred during a period of extreme volatility and wild price swings in the crypto market, which led to over $215 million in forced trader liquidations, with a significant chunk coming from bets on Ethereum.

Recently, Ethereum large-scale investors, referred to as “whales,” have been actively purchasing large amounts of Ether. In the past three weeks alone, they have acquired over 700,000 ETH, which translates to approximately $2.45 billion based on current market prices, as reported by on-chain analyst Ali Martinez.

During the volatile cryptocurrency market conditions, where prices saw significant fluctuations, approximately $215 million worth of trades were forcibly liquidated. Among these, around $50.61 million were associated with wagers placed on Ether.

Over the past three weeks, Ethereum’s large investors, or “whales,” have purchased around 700,000 units of Ether (ETH), equating to a grand total of roughly $2.45 billion.— Ali (@ali_charts) June 15, 2024

As a crypto investor, I’ve noticed an intriguing pattern: whenever the whales make large Ether purchases, Ethereum, the second-largest cryptocurrency, experiences volatile price swings. For instance, on June 14th, ETH prices dropped dramatically from around $3,500 to a low of $3,368. Following this plunge, the price bounced back and stabilized near $3,500 again.

Despite a 2.31% increase over the past day to reach $3,565 at the present moment, Ether experienced a 2.96% decrease in value during the past week. Anticipation of further price drops was prevalent among derivative markets due to bearish trading indicators leading up to last Friday’s options expiration.

As an analyst, I’ve noticed that despite the market volatility taking many investors by surprise, there are signs that the situation may be improving based on blockchain metrics. Specifically, there was a notable increase in the number of transactions indicating investor profits being cashed out. However, this trend has since leveled off. This potential shift could suggest that selling pressure is easing between the price ranges of $3,400 and $3,600.

According to Eric Balchunas, there’s optimism for the future as a exchange-traded fund (ETF) specifically for Ethereum may become available for trading as early as July 2nd.

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2024-06-16 12:20