The current landscape of the crypto market reveals an interesting divergence from traditional markets and commodities, with the 30-day correlation of Bitcoin (BTC) and Ethereum (ETH) hovering close to 0.
This suggests that the crypto market is charting its own course, independent of broader financial trends.
The 30-day correlation of BTC & ETH with traditional markets and commodities is currently close to 0, meaning crypto is doing its own thing right now.
🔗https://t.co/Wx8RxQwatF pic.twitter.com/8aQqAdwNQz
— IntoTheBlock (@intotheblock) May 8, 2024
Amidst this scenario, Ethereum, the second-largest cryptocurrency by market cap, finds itself trading below the crucial $3000 mark. However, rather than signaling a downturn, this presents an opportunity for whales to accumulate more tokens.
According to data from Lookonchain, a whale holding a long position in Ethereum recently withdrew a significant amount of ETH from Binance.
This withdrawal amounted to 6,030 ETH, equivalent to $18.09 million, further indicating the whale’s confidence in the asset despite its current price level.
A whale who is long $ETH withdrew 6,030 $ETH($18.09M) from #Binance again 20 minutes ago.
This whale has accumulated 10,758 $ETH($32.14M) from #Binance since May 2.
He swapped $ETH to $stETH and deposited it into #Aave, then borrowed $28.5M stablecoins from #Aave to buy more… pic.twitter.com/tbtXLDbvua
— Lookonchain (@lookonchain) May 9, 2024
Whale Accumulates Bitcoin And Ethereum Since May 2
In fact, this particular whale has been actively accumulating Ethereum from Binance since May 2, amassing a total of 10,758 ETH, valued at $32.14 million, amidst the ongoing decline in Ethereum’s price.
Interestingly, the whale’s strategy involves converting ETH to staked ETH (stETH) and depositing it into the Aave protocol. Subsequently, they leverage this position by borrowing $28.5 million worth of stablecoins from Aave to purchase more ETH.
This accumulation pattern reflects the whale’s belief in Ethereum’s long-term potential, even amidst short-term market uncertainty. By capitalizing on the dip below $3000, the whale is positioning themselves for potential gains as Ethereum’s price dynamics evolve.
Overall, the actions of whales like this one underscore the resilience of Ethereum and its attractiveness as an investment option, despite temporary market fluctuations.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Image Source: nexusplexus/123RF // Image Effects by Colorcinch
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