Ethereum Whales Accumulate Despite Temporary Dip Below $2000

Coin WorldTuesday, Mar 4, 2025 11:52 am ET

1min read

Ethereum, the second-largest cryptocurrency by market capitalization, temporarily dipped below the $2,000 mark on Tuesday, according to data from CoinMarketCap. The price of Ethereum fell to an intraday low of $1,998.50 before rebounding slightly.

Despite the temporary dip, Ethereum whales, or large holders of the cryptocurrency, continued to accumulate more ETH. One whale increased its holdings by 2,417 ETH, bringing its total position to 13,671 ETH, acquired at an average price of $2,811. Another whale doubled down on its position, accumulating another 2,000 ETH, building a position of 34,000 ETH at an average price of $2,753.

A separate whale also made a significant purchase, buying 4,993 ETH for an average of $2,075 each, totaling $10.36 million. This purchase came as Ethereum's price was hovering around the $2,000 level.

Analysts attributed the temporary dip in Ethereum's price to profit-taking by investors, as well as the overall market sentiment. However, they also noted that the continued accumulation by Ethereum whales suggests that there is still strong demand for the cryptocurrency at these levels.

Ethereum's temporary dip below $2,000 comes amid a broader market correction in the cryptocurrency space. Bitcoin, the largest cryptocurrency by market capitalization, also experienced a pullback, falling below the $40,000 mark on Tuesday.

Despite the recent market volatility, Ethereum's fundamentals remain strong. The cryptocurrency is set to undergo a major upgrade, known as Ethereum 2.0, which is expected to improve its scalability and sustainability. Additionally, Ethereum's use case as a platform for decentralized finance (DeFi) applications continues to grow, further boosting its long-term prospects.

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