Ethereum Whales Unfazed by the Correction: Here’s How Much They Bought

TL;DR

• Big investors scooped up over $1.7 billion worth of ETH in the past few days and now control a quarter of the asset’s circulating supply.
• Many analysts also seem unconcerned by the pullback, predicting that the price of the cryptocurrency may hit a new all-time high of more than $6,000 in the short term.

Increasing the Exposure

Ethereum’s (ETH) price was booming earlier this month, reaching a local peak of almost $4,800 on August 14. Since then, though, it headed south and currently trades at around $4,250 (per CoinGecko’s data).

Instead of panicking, however, large investors (known as whales) saw the correction as an opportunity to fill their bags at cheaper prices.

X user Ali Martinez revealed that market participants holding between 10,000 and 100,000 coins purchased 400,000 ETH during the latest dip. The USD equivalent of the stash is north of $1.7 billion, while this cohort of investors now controls almost 30 billion tokens, or roughly 25% of the asset’s circulating supply. 

The significant accumulation during the pullback indicates firm conviction among whales and can be interpreted as a positive sign. After all, purchases of that type reduce the amount of ETH tokens available on the open market, which, combined with steady or increased demand, should push the price up. The whales’ actions may also encourage other market participants to follow suit.

Another factor suggesting that a resurgence might soon replace ETH’s plunge is the asset’s exchange netflow, which recently tumbled to a nine-year low. This means that investors have moved their holdings from centralized platforms toward self-custody methods, which reduces the immediate selling pressure. 

ATH Still on the Agenda?

Many experts and analysts on X believe the second-largest cryptocurrency remains poised to reach a new historical peak in the short term. X user CryptoGoos argued that the “supertrend (is) holding steady,” predicting that the price might rally above $6,000 in the following weeks. 

Lucky told their 2.2 million followers on the social media platform that institutional adoption of ETH “is on a serious run,” reminding that some renowned companies have recently stacked a substantial amount of the asset.

Tom Lee – Chairman of Bitmine Immersion Technologies, which holds billions of dollars worth of ether – called the recent price retreat “a minor correction.” He expects the valuation to dip under $4,100 this week but remains bullish on the long term. Less than a month ago, he forecasted that ETH could skyrocket to the ridiculous (at least as of now) $60,000 per coin.

The post Ethereum Whales Unfazed by the Correction: Here’s How Much They Bought appeared first on CryptoPotato.