Ethereum Drops 4.159% as Whales Accumulate 140,000 ETH

Ethereum's latest price was $2656.70, down 4.159% in the last 24 hours. This price movement has been accompanied by significant activity from large holders, or "whales," who have been actively reshaping the market. Recently, whales purchased 16,500 ETH, followed by a substantial withdrawal of 140,000 ETH from exchanges. This strategic movement indicates a renewed confidence among large holders, suggesting a potential shift in Ethereum’s market dynamics after a period of consolidation. The whale’s decision to repurchase ETH at a higher price signals strong conviction, underscoring the growing demand despite recent profit-taking pressures. This move reflects a strategic repositioning rather than a retreat, indicating heightened confidence in Ethereum’s near-term prospects. The whale’s willingness to buy back at a higher price than the initial sale average suggests anticipation of further price appreciation, reinforcing the narrative of accumulating demand from large holders.

Supporting this bullish sentiment, the Large Holders Netflow to Exchange Netflow Ratio recently dropped to -2.83, a two-week low, signaling a substantial movement of ETH from exchanges to cold storage. This trend is a classic indicator of accumulation, as investors prefer to hold assets off-exchange to reduce selling pressure. Additionally, over 140,000 ETH were withdrawn from exchanges in a single day—the largest such outflow in over a month. These metrics collectively suggest that both whales and retail investors are positioning for potential upward momentum in Ethereum’s market.

On the 10th of March 2024, the Bitrue hacker exchanged 4,207 ETH at an average rate, amounting to 16.34M DAI. Now, the same address used that DAI stash to purchase ETH at less expensive costs. Recent data from Lookonchain showed several big swaps. The hacker then routed the ETH through Tornado Cash to mask exits. As of the latest information, the hacker had paid approximately 8.3M DAI to repurchase 2,999 ETH. These purchases underlined timing and control of capital, especially with the hacker entering after ETH finished its correction. In conjunction with this, over 140,000 ETH was withdrawn from centralized exchanges on a single day, becoming the largest such outflow in more than a month. This massive withdrawal from the exchanges signaled accumulation for the long-term gain as capital continued to rotate to ETH. In case of a demand spike, the liquid ETH in the market will be low. Consequently, this may create scarcity, thus ETH may rally. The above accumulation, coupled with outflow on exchanges, could be an indication of increasing bullish confidence and could also herald the beginning of a tightening supply situation.

Worth noting is that the Open Interest (OI) on ETH also set a new record, indicating increased involvement of traders and a buildup of institutional volume. This jump was accompanied by a transfer of capital out of BTC, as people started to enjoy taking risks in Ethereum once again. The tremendous inflows into ETFs and the high calls option trading have added to the fuel, despite ETH struggling to break above the resistance. Although OI tends to favor further bullish continuation, price remained stuck as some profit-taking occurred and OI dropped a bit. The macro picture was on the bullish side, yet the technical conditions were facing headwinds, such as the bearish MACD crossover, which should be cautioned. The most important level to monitor was the $2,880. Such a zone, with rising OI, should it be cleared by bulls, could confirm the bullish view. Otherwise, ETH may experience short-term consolidation.

Ethereum leads a $336M liquidation wave with heavy long losses. This event highlights the significant impact of liquidations on the Ethereum market, as large positions are forced to close, leading to a wave of selling pressure. The liquidation of long positions indicates that many traders were caught off guard by the sudden market movement, resulting in substantial losses. This event underscores the volatility and risk associated with trading Ethereum, as even experienced traders can be caught in liquidations. The liquidation wave also highlights the importance of risk management in trading, as traders must be prepared for sudden market movements and have strategies in place to mitigate losses. The liquidation of long positions also suggests that there may be a shift in market sentiment, as traders who were previously bullish on Ethereum may now be more cautious. This event serves as a reminder of the importance of staying informed and being prepared for sudden market movements in the volatile world of cryptocurrency trading.