Ethereum Drops 10% Amid Geopolitical Tensions Whales Accumulate 3.72% More

Ethereum, the world’s second-largest cryptocurrency, experienced a significant price drop of nearly 10% on Thursday, breaking below key support levels. This decline was largely attributed to rising geopolitical tensions, particularly the conflict between Israel and Iran, which has shaken global markets. The overall crypto market has been under pressure due to these geopolitical uncertainties.

Despite the market turmoil, on-chain data reveals an intriguing trend among large Ethereum holders, often referred to as "whales." These whales have been quietly accumulating Ethereum. Over the past month, wallets holding between 1,000 and 100,000 ETH have added an extra 1.49 million ETH to their holdings, increasing their total holdings by 3.72%. This accumulation brings their total ownership to around 26.98% of Ethereum’s total supply, suggesting that these large holders might be preparing for a significant market move.

The accumulation by whales comes at a time when retail traders have been selling off and booking profits. This divergence in behavior between retail investors and large holders is a notable development. The current chart pattern for Ethereum remains bullish in the bigger picture, and analysts believe that if Ethereum manages to break above its current trading range, its next target could be around $3,200 by the end of this month or early next month. However, there is also speculation about a possible "summer lull," where crypto markets typically slow down during the mid-year months. If this occurs, Ethereum might pull back before starting a new rally later in the year.

The main danger level to watch for Ethereum is $2,100. If the price drops below this level, it could indicate further declines. However, there is a rare positive sign on Ethereum’s monthly chart that appeared before ETH’s big price jump in 2023. If this pattern repeats, Ethereum could start rising and might even reach its all-time high by October.

In addition to the accumulation by whales, there have been other notable movements in the Ethereum market. For instance, the Ethereum Foundation recently moved a significant sum of ETH, which provides insights into potential shifts in market dynamics. Furthermore, two wallets, likely controlled by a single whale, accumulated 4,521 ETH worth $11.7 million at an average price of $2,593 immediately after the price drop. This activity suggests that some large holders are confident in Ethereum’s future prospects despite the recent price decline.

Overall, the current situation in the Ethereum market is characterized by a mix of uncertainty and opportunity. While geopolitical tensions and market volatility have led to a price drop, the accumulation by whales and positive chart patterns indicate that there may be significant upside potential for Ethereum in the coming months.