Whales buying up Ethereum could lead to an increase in the value of the asset in the near future

According to Santiment, Ethereum-whale activity has increased to a two-year high. After an attempt by loss-making addresses to support the coin around $1200 failed, large investors who have no interest in seeing the token fall below that mark came to its defense. One of them, with 720K ETH (~$861M) in his account, woke up for it after a two-year nap.

Whale’s strategy 

Typically, the fact that whales and sharks are starting to accumulate assets is an indication that the coin is about to touch the bottom. According to researchers, this already happened in 2020. Back then, the whales’ hoarding tactics, as well as the sharks’, triggered the most important altcoin to rise within five weeks, and Ethereum’s value went up 50%.

🐳🦈 #Ethereum‘s active shark & whale addresses continue accumulating with prices less than a quarter of their #AllTimeHigh levels a year ago. In Oct/Nov 2020, these 100 to 100k $ETH addresses assisted in pushing $ETH to a +50% price rise over 5 weeks. https://t.co/v8gh4RfV7z pic.twitter.com/Oe3lTo12uj

— Santiment (@santimentfeed) November 23, 2022

Experts don’t exclude that a similar situation could happen again. But, as long as there is a crisis in the market, this is unlikely. 

In just one day, large investors, with ether between $10.9M and $1.09B, bought $1.03B worth of ETH. This is the fifth-largest one-day addition to the largest group of whales in the last year. 

Analyst company Lookonchain also recorded the activity of a whale who had been inactive for two years. The asset holder has a total of 720K ETH in his account, but researchers noticed that he used to have nine wallets, each with 80K ETH, but now there are eight, each with 90K ETH. 

According to experts, this happened after Whales transferred about 400K ETH from exchanges to unknown wallets on November 21 because the cryptocurrency market fell.  

What’s going on with Ethereum right now? 

The current Ethereum price is $1193, with a 24-hour trading volume of $8.6B. In the last 24 hours, ETH has gained 0,16%. CoinMarketCap currently ranks it #2, with a live market cap of $145.91B. It has a circulating supply of 122,373,866 ETH coins. 

According to Cryptonews analysts, on the four-hour chart Ethereum reflects bearish conditions at $1176 and has formed a bearish engulfing candle, suggesting a bearish market bias is possible. 

“The asset is testing the 50-day moving average line at $1175, and a bearish cross below that level could lead to the 38.2% Fibonacci level of $1160,” the report says. 

In addition, experts note, if the cryptocurrency goes below this level, it will allow ETH to rise in price to $1145 or $1130.

However, if the resistance remains at $1216, Ethereum could soar to $1250. There are other reasons to believe that the coin will rise in value soon. More about that below. 

Ethereum prices rising 

The fall in the value of Ether could end as early as next week and a rebound could occur. Here are three reasons why this could happen: 

1. Ethereum’s historical volatility. Over the past 30 days, the volatility of the asset has fallen to a record low, which could lead to an upward reversal of the asset’s volatility in the near future.
2. FTX CEO’s speech at the DealBook Summit. The appearance of the head of the infamous exchange could shake the market and affect both the growth and decline in the value of ETH.
3. Open interest in cryptocurrency. Recently, Ethereum derivatives open interest reached a one-month low, suggesting that investors are still too afraid to gain leveraged exposure to the asset. However, such low open interest is mostly temporary, especially by the end of the month.

How can I make money on this?

Earlier we reported that Bitcoin and Ethereum values are falling due to the FTX crash. On the night of November 10, BTC fell below $15.6K and Ethereum broke $1.1K. It was a great chance for investors to buy on the lows, but the value of cryptocurrencies is still optimal to buy. Therefore, assuming ether bottoms out soon and then soars in price, it would be logical to wait and buy at the low amounts and wait for increases. 

For that, monitor the market and read our articles. We write about all ups and downs of cryptocurrencies so that you stay informed about the latest events from the Web3 world.