Ethereum breached the $2.8k support and dropped to a low of $2787 before buyers stepped in to defend the key support.
In fact, as of this writing, ETH traded at $2863, down 2.63% on the daily charts, extending a week-long bearishness.
With the altcoin’s weakness persisting and the price continuing to decline, whales and institutions keep buying the dip.
Ethereum whales and institutions continue to buy the dip
After Ethereum [ETH] fell below $2.8k, it created another buying window for investors, especially large entities. According to Onchain Lens, a newly created wallet purchased 61,000 ETH, worth $171.15 million, from Binance.
Source: Onchain Lens
Lookonchain also reported another whale purchase. According to the on-chain monitor, OTC Whale bought another 20K ETH for $56.13 million.
Over the past 5 days, this whale has bought 70,013 ETH, valued at $203.6 million, and now holds 100,130 ETH, worth $283.79 million.
Source: Lookonchain
Additionally, World Liberty Financial [WLFI] rotated from Bitcoin [BTC] into ETH as Ethereum becomes increasingly affordable.
According to Lookonchain WLFI team swapped 93.77 WBTC, worth $8.08 million, for 2,868 ETH. In total, these whales accumulated 83,868 ETH worth $235.41 million.
Often, when whales and institutions accumulate during a prolonged period of weakness, it speaks of conviction. As such, these market players perceive the current conditions positively and see them as short-lived.
Source: CoinGlass
Furthermore, exchange activities echoed this whale-driven accumulation phase. According to CoinGlass, Ethereum has recorded negative Netflow for three consecutive days, with $2.69 billion in ETH flowing out of exchanges.
At press time, Netflow was -$68.9 million, a significant drop from -$224 million the previous day. A sustained negative netflow suggested higher outflows, a clear sign of aggressive spot accumulation.
Panic sellers remain extremely active
While some whales and institutions have turned to accumulate ETH at a discount, others panicked amid a prolonged stay below $3k.
According to Lookonchain, a whale panic-sold 5,500 ETH for $16.02 million at $2,912. Just days ago, the whale purchased 2000 ETH for $5.97 million at $ 2,984.
Source: Lookonchain
Historically, the whale has tended to purchase at higher levels and sell at lows, thereby realizing significant losses.
Additionally, a long-term dormant whale returned after nine years and deposited 50,000 ETH worth $145.25 million, according to Lookonchain.
When whales sell during a downtrend, it signals fear and a lack of conviction in the market, leading them to close to avoid further losses. This continued selling has further strained the market, leading to lower prices.
Bearish momentum is still prevalent
Despite continued whale accumulation, ETH has faced intense downside pressure, making whale demand inadequate for an upside reversal.
On the contrary, the downward momentum has remained elevated. In fact, the altcoin’s MACD dropped to -51, falling deeper into the bearish zone, signaling seller dominance.
Source: TradingView
Likewise, its Relative Vigor Index (RVGI) also fell into negative territory, currently holding at -0.3, validating downside strength.
These market conditions signal potential trend continuation, with ETH likely to drop below $2.8k again towards $2633. However, with whales accumulating, they have effectively held a $2.8k zone, and sustained demand from the group could lift ETH towards $3070.
Final Thoughts
- Ethereum whales continue buying the dip, adding 83,868 ETH worth $235.41 million.
- Ethereum [ETH] dipped to $2.7k before slightly rebounding to $2.8k amid intense bearish pressure.
Source: https://ambcrypto.com/235mln-ethereum-whale-buying-follows-2-8k-breakdown-what-happens-next/
