Be Smart: A Trader Buys $68 Million Worth of Ethereum 🤑
Despite the current bearish market sentiment, traders and investors are accumulating significant amounts of Ethereum (ETH) due to a notable price drop. On August 3, 2024, Lookonchain, an on-chain analytics firm, reported on X that a trader with a perfect track record purchased 2,424 ETH valued at $7.22 million.
Furthermore, this trader also bought 4,000 ETH worth $12.58 million 24 hours prior. According to Lookonchain, this trader has accumulated 19,436 ETH worth $68.25 million since May 29, 2024, following the approval of spot Ethereum Exchange Traded Funds (ETFs). The average price of this large ETH acquisition is about $3,587.This continuous accumulation suggests a prime buying opportunity, likely driven by ETH's recent price decline.
Some view this as an ideal time to buy, while others are selling off their holdings. This situation is reminiscent of the post-spot Bitcoin ETF approval in the U.S., where the market initially experienced a significant downturn but later turned bullish, leading to substantial gains in the overall cryptocurrency market.
Ethereum Price Performance Analysis
Currently, ETH is trading near $2,930, having declined by over 3.4% in the past 24 hours. Trading volumes have also dropped by more than 20%, indicating reduced participation from investors and traders amidst the bearish market sentiment.
Technical Analysis and Future Projections
Experts suggest that ETH is at a crucial support level of $2,900. It appears to be forming a bullish double-bottom pattern with a bullish divergence in the Relative Strength Index (RSI). Historically, ETH has seen significant upward movement when reaching this level, having done so five times since April 2024, each time resulting in a strong rally. If this pattern continues, ETH could potentially rise to $3,150.
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