Whales Orchestrate Ethereum's $228M Price Crash

Ethereum's Recent Price Crash: A Whale-Driven Event

The recent Ethereum [ETH] market crash was not a spontaneous event but rather a strategic move by whales to secure substantial profits. A notable Ethereum whale, dormant for six years, transferred 77,736 ETH, valued at $228.6M, to Bitfinex. This wallet had initially withdrawn the same amount for just $11.9M in January 2019, when ETH was priced at $153 per token. Additionally, machibigbrother.eth impeccably timed the market by depositing 1,000 ETH worth $2.85M into Binance right before the crash, following a previous move of 4,413 ETH worth $13.84M to the same exchange.

These maneuvers by whales highlighted their market insight and potentially amplified the crash’s impact on ETH. By pulling out significant volumes of ETH, these actions could contribute to increased selling pressure, leading to a sharper decline in ETH’s price. These whale activities might signal cautious trading, with investors watching for similar patterns to predict future market movements.

As the ETH price fell, a whale who shorted ETH using 50x leverage saw their unrealized profit soar past $30M. This aggressive short position likely intensified the downward pressure on ETH’s price. By betting heavily against ETH, the whale’s large leveraged trade could have triggered significant liquidations of long positions, further driving the price down. Such high leverage means even small price movements could lead to substantial market impacts. Traders should likely remain vigilant for similar whale maneuvers, as these can foreshadow or even precipitate sharp market corrections.

This manufactured price crash by ETH whales led the altcoin into a logarithmic regression pattern. Historically, Ethereum moved above the midline of this channel during peak bull runs, as seen in late 2021 when it surged towards $4,000. However, recent trends show a decisive shift. By June 2024, ETH approached the lower boundary of this trend, indicating a bearish phase with a gradual descent to a support level near $1,750. This lower trendline interaction often signifies a pivotal area where the market reassesses Ethereum’s value