Recent price movements in the cryptocurrency market have seen Ethereum experience a significant downturn, with the altcoin finally sustaining a break below the critical support level of $3,000. Ethereum has seen a notable decline of 4.76% in the past 24 hours, bringing its current trading price to just over $2,900.
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Although retail traders are still fighting for the next movement, on-chain data shows an interesting pattern of ETH accumulation by a specific whale entity. This whale, whose strategic moves have historically demonstrated an impressive 100% investment win rate, has been steadily increasing its ETH holdings over the past two months.
Whale sees crash as buying opportunity
According to on-chain data observed by Lookonchain on social media platform X, a smart money whale has been taking advantage of the recent ETH price drop to increase its holdings. As revealed by the on-chain tracker, this whale recently purchased another 2,424 ETH worth $7.22 at the time of purchase. This latest acquisition brings the whale’s total purchases to 19,436 ETH worth $68.25 million, averaging $3,511 per ETH since May 29. At the time of writing, the smart money whale is sitting on nearly $8 million in unrealized losses.
At first glance, this aggressive buying approach may seem risky, especially given the prevailing bearish sentiment surrounding Ethereum. However, history suggests that they may actually know what they are doing better than most. This particular whale boasts an impeccable track record with a 100% win rate since November 2022 and seems to know exactly when to buy and sell Ethereum.
Notably, this smart money whale has been buying Ethereum at lows and selling at higher prices between November 21, 2022, and May 23, 2024, with a total profit of over $38 million. The whale’s recent purchases, despite the ongoing market downturn, suggest a level of confidence and insight that has proven accurate in the past.
Smart money with a 100% win rate bought 4,000 $ETH($12.58 million) again 5 hours ago!
This smart money bought and sold $ETH 7 times from November 21, 2022 to May 23, 2024, buying at low prices and selling at high prices every time, with a 100% win rate and a total profit of more than… pic.twitter.com/3fnCkyfmQT
– Lookonchain (@lookonchain) August 2, 2024
What’s next for Ethereum?
At the time of writing, Ethereum is trading at $2,900, marking a significant 12% decline over the past seven days. This sharp decline has triggered substantial liquidations in the market. According to data from Coinglass, $78.72 million worth of ETH long positions have been liquidated in the past 24 hours alone.
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While the crypto’s dip below $3,000 is concerning for investors, bullish hope may not be lost yet. The $3,000 price point is a critical support level supported by substantial network activity. Data indicates that over 1.7 million addresses purchased Ethereum just below this level, highlighting a robust area of buying interest. This means that $3,000 is still a strong support level for ETH, which could prevent further losses in the coming week.
Featured image from CNBC, chart from TradingView
