High Value Investors Increase Ethereum Positions During Market Drop
While Ethereum continues to face selling pressures, large investors called “whales” are increasing their assets by taking advantage of the price drop. On-chain analyst Ali Martinez pointed out this trend on social media platform
Details of Whale Accumulation
This accumulation phase is at play, Martinez noted in an earlier report, where these whales purchased 240,000 tokens worth approximately $840 million in a single day during a dramatic market decline. Holding assets between 10,000 and 100,000 ETH, these large investors strategically accumulate assets in anticipation of future market gains.
Trends Contrary to Market Sentiment
Interestingly, as Ethereum approached the $4,000 level in the last days of May, whales with Ethereum ETF excitement reversed the upward trend and increased their on-chain activity. This indicates a strategy to take advantage of market fluctuations and prepare for potential returns.
Ethereum Price Movements and Technical Indicators
Whale activity increased as Ethereum's market cap approached the $3,400 threshold, revealing carefully timed accumulation strategies. Currently, the price of Ethereum is $3,563, which maintains an 18% increase over the past month despite a 3.5% decrease from last week.
TD Sequential Buy Signal
Alongside the whale movements, the TD Sequential indicator on Ethereum's daily chart has issued a buy signal, indicating a potential short-term recovery. Martinez emphasizes that this signal generally predicts a recovery spanning one to four day candlesticks, with recent price movements showing a 1% increase in the last 24 hours.
Conclusion
Overall, despite ongoing selling pressures and volatility in the Ethereum market, large investors are strategically positioning themselves by purchasing large amounts of ETH. This behavior not only highlights the importance of whales in influencing market dynamics, but also signals a potential bullish outlook in the short term. It is important for investors to make informed decisions by closely following these trends along with technical indicators.
