Ethereum Whales Still On The Rise Despite Immense Price Dip
Updated statistics from Santiment, an on-chain social analytic cryptocurrency site confirms that Ethereum whales are pumping into the cryptocurrency market like never before. The dip in Ethereum prices has surprisingly not disrupted the number of whales that have now doubled over the last few days.
Twitter technical analyst Ali Martinez who shared this information on Twitter notes that over 50 new whales have entered the market. Currently, there is no specific amount of the total number, which is increasing by the second, approximately 70 new whales have been welcomed into the Ethereum market within a space of three days.
Known for holding and investing large amounts, all incoming whales are holding $1,000-$10,000 in Ethereum. With the metrics above, it is safe to say that a minimum of roughly $100,000 has been poured into the Ethereum market in less than a week. At this rate, there’s no telling how many new wallet addresses could be recorded, however, if this momentum is maintained, the number of wallet addresses as well as the total in cash value could triple in the next week.
The confusion as to why whales are rushing into the market at this time is valid. However, many avid cryptocurrency users are probably already aware that whale movements are not determined or influenced by the current state of the market.
In fact, most investors have repeatedly advised that a bear market is the best time to invest in cryptocurrencies like Bitcoin and Ethereum, mainly because a bull run is always expected to precede a bear market, although it sometimes takes longer than expected.
But still, this works in favor of whales who invest and expect to realize profit much later. Meanwhile, most investors are usually working with fundamental analysis. If a cryptocurrency seems promising and profitable in the next few years, investors usually want to take advantage of that as quickly as possible.
Meanwhile, for the day to day trader, ETH’s trading price isn’t the most encouraging and profitable. This was not the case in the first weeks of August as ETH was gunning for a price breakout. When the breakout which led prices above $400 was finally recorded, prices continued to head for yet another breakout and new resistance levels were recorded.
A dip to previous support levels of $380 followed before a yearly high of $480 was achieved on the 2nd of September. Going forward, Ethereum and other altcoins might continue to drop, given that Bitcoin has taken a subtle decline within the week. The chances of trading prices increasing are as likely as prices taking a downward turn. But at the time of this report, with the bulls slowly returning, the bear trend may be temporary.