Ethereum Whales Accumulate 520% More as Price Drops 6.6%

Ethereum's price has recently dropped below $1,500 due to increased bearish pressure, triggered by economic tensions and tariffs introduced by the Trump administration. This situation has caused a significant sell-off, with nearly $78.8 million worth of Ethereum being liquidated. Despite these bearish conditions, Ethereum holders are remaining loyal and are not rushing to sell their holdings. The investor who recently reactivated their wallet is still sitting on an unrealized profit of around $12.3 million, despite it having reached over $45 million at Ethereum’s peak in 2021. No sales were made then, and currently, despite a bearish market, whales are not showing a willingness to sell.

According to data, the volume of large transactions has soared by nearly 520% as whales buy more Ethereum while its price is below $1,500. The amount of these transactions jumped from $1.58 billion to over $9.8 billion. This indicates that whales are heavily purchasing Ethereum during this price dip, which could mean they are accumulating more and potentially setting the stage for a price rebound. However, Ethereum’s MVRV ratio has dropped significantly in recent times. It currently stands at 0.76, the lowest since December 2022. A level below 1 suggests that market value is less than the last realized value of Ethereum. It hints at significant unrealized losses across the Ethereum network. This level was last observed during the market crash of late 2022.

Ethereum’s price has been declining sharply, breaking below immediate support channels and is now aiming for a drop toward Fibonacci channel. Though buyers are attempting a rebound, sellers continue to hold the price within a bearish region. As of writing, ETH price trades at $1,458, declining over 6.6% in the last 24 hours. The ETH/USDT trading pair is hovering just below EMA20 trend line, which could present a significant hurdle. If it can maintain above this level, it could be beneficial for buyers, potentially driving the price toward descending resistance line. A surge above that level could send the ETH price toward $2K. Conversely, if the price holds below the EMA20 trend line on the 1-hour chart, sellers could drive it down to around $1,300. Further bearish pressure might keep Ethereum around the $1K level.

Ethereum's large transaction volume has surged by nearly 520% as whales accumulate more of the cryptocurrency while its price remains below $1,500. This significant increase in whale activity suggests a potential shift in market sentiment, despite the current market slump. Whales, who are typically large holders of a particular asset, often influence market trends due to their substantial holdings and trading activities. The surge in their transaction volume indicates a growing interest in Ethereum, which could be a precursor to a price rebound.

The accumulation of Ethereum by whales at lower price points is a strategic move that often precedes a bullish trend. Whales typically buy during market downturns to capitalize on lower prices, with the expectation that the asset's value will rise in the future. This behavior is often seen as a bullish signal, as it suggests that large investors are confident in the long-term prospects of the asset. The current market conditions, characterized by a slump in prices, present an opportune moment for whales to increase their holdings. The price of Ethereum has been volatile, and the recent decline has created a buying opportunity for these large investors. The surge in whale volume indicates that they are taking advantage of the lower prices to accumulate more Ethereum, which could lead to a price rebound in the near future.

The accumulation of Ethereum by whales is a positive sign for the cryptocurrency market. It suggests that large investors are confident in the long-term prospects of Ethereum and are willing to invest in it despite the current market slump. This confidence could attract more investors to the market, leading to an increase in demand and a potential price rebound. However, it is important to note that the cryptocurrency market is highly volatile, and prices can fluctuate rapidly. Therefore, investors should exercise caution and conduct thorough research before making any investment decisions.