Ethereum Price Surges Then Drops 2000 After US Crypto Reserve Announcement
1min read Ethereum, the second-largest cryptocurrency by market capitalization, experienced significant price volatility following the announcement of a strategic crypto reserve by the US President. This reserve includes Ethereum, Solana, ADA, Ripple’s XRP, and Bitcoin. The market reacted swiftly, with Ethereum's price surging and then dropping dramatically within a few days. On March 2nd, Ethereum was trading at $2,191, peaking at $2,542 on March 3rd, before falling below $2,300 by the end of the day and settling at $2,050 the next day.
The recent price movements in the crypto market have revealed key strategies employed by Ethereum holders. According to Glassnode, a blockchain analytics firm, Ethereum holders adjusted their positions during the volatile period. Investors who acquired their tokens at $3,500 made significant adjustments in February. These investors started their positions at a peak price of $2,500 and remained in their positions when Ethereum revisited $2,050. Glassnode figures indicate that these investors own 1.75 million ETH with an average acquisition price of $3,200, resulting in a 10% decrease from their entry price.
On March 1st, investors bought 500k ETH at an average price of $2,200. However, this group quickly redistributed their holdings when Ethereum's price hit $2,500. The recent price action has also revealed a new major price resistance at $2,800, where market traders accumulated 800k tokens. This level is now being closely watched by crypto holders and investors as a potential rebound point for Ethereum.
Market analysts have also noted a growing trend of accumulation among crypto wallets. Crypto commentator Ted highlighted that a crypto whale investor recently bought 17,855 ETH worth roughly $36 million, with an average price of $2,054. This transaction validates the current accumulation trend, suggesting that the current price is seen as a "buy opportunity." The whale's ETH holdings are now valued at $2.5 billion, indicating significant confidence in Ethereum's future performance.
Currently, Ethereum is trading between $2,100 and $2,300, which is still 
