Ethereum Prices Soar as Crypto Whales Invest Millions in Stablecoins
If you’re following Ethereum closely, you would have noticed a significant spike in its price recently. The catalyst behind this surge? Crypto whales pouring a whopping $35.11 million in stablecoins into Ethereum, propelling it past the $3,400 mark. This massive investment by crypto whales is poised to shape Ethereum’s future price movements.
How Crypto Whales’ Activities Are Impacting ETH Price
Let’s delve into how the activities of these crypto whales are establishing a strong support level for Ethereum’s price:
* A close inspection of the transactions reveals a strategic move by eight crypto wallets, likely controlled by a single entity. They invested $20.86 million in USDT to purchase 6,144 ETH at an average price of $3,395.
– Five wallets labeled “Address Group 1” and funded by wallet 0x065 frequently exchanged USDT and ETH with “Address Group 2”, funded by wallet 0x8ce, indicating a single entity behind these transactions.
* Another notable trade involved crypto wallet 0x5e9, which bought 4,178 ETH worth $14.245 million in DAI, averaging $3,410 per ETH. This whale had previously made a substantial profit from trading activities in Ethereum and Wrapped Bitcoin (WBTC).
Examining market trends, the In/Out of the Money Around Price (IOMAP) chart depicts Ethereum in a tight range as a result of recent crypto whale transactions. This has led to the formation of a strong support level between $3,328 and $3,428, with 3.13 million addresses acquiring 5.78 million ETH at an average price of $3,371.
If Ethereum drops below this support level, it might encounter significant resistance, slowing down its upward momentum. However, above this zone, resistance seems less formidable.
* The next hurdle lies between $3,433 and $3,534, where 2.1 million addresses previously purchased 1.6 million ETH, establishing an average price of $3,499.
– Some investors might sell at these levels to break even, potentially triggering a correction in Ethereum’s price.
The Future Price Trajectory of Ethereum
These recent transactions play a crucial role in determining Ethereum’s short-term price trajectory. Market analysts and experts are closely monitoring these developments to forecast Ethereum’s price movement in the near future. One such expert, Hitesh Malviya, founder of the on-chain analytical platform DYOR, believes that Ethereum has hit a local bottom, suggesting a potential upward trend.
“After 17 days of re-accumulation period on ETH, the market price is finally moving above the fair price, indicating that we’ve found the local bottom and are ready to go up,” – Hitesh Malviya
DYOR’s fair price model estimates a token’s intrinsic value based on supply and demand dynamics. While this model is experimental and subject to a margin of error, it provides valuable insights into the cryptocurrency market.
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