Recent price movements in the cryptocurrency market have seen Ethereum experience a significant downturn, with the altcoin finally sustaining a break below the critical $3,000 support level. Ethereum has suffered a notable 4.76% decline over the past 24 hours, bringing its current trading price to just above $2,900.
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While retail traders are still scrambling for their next move, on-chain data shows an interesting accumulation pattern of ETH by a particular whale entity. This whale, whose strategic moves have historically demonstrated an impressive 100% investment win rate, has been steadily increasing their holdings of ETH for the past two months.
Whale Sees Crash As Buying Opportunity
According to on-chain data noted by Lookonchain on social media platform X, a smart money whale has been taking advantage of the recent ETH price fall to add to its holdings. As revealed by the on-chain tracker, this whale recently bought another 2,424 ETH worth $7.22 at the time of purchase. This latest acquisition brings the whale’s total purchases to 19,436 ETH worth $68.25 million at an average of $3,511 per ETH since May 29. At the time of writing, the smart money whale is sitting on almost $8 million in unrealized losses.
At first glance, this aggressive buying approach might appear risky, especially given the prevailing bearish sentiment surrounding Ethereum. However, history suggests they might actually know what they’re doing better than most. This particular whale boasts a flawless track record with a 100% win rate since November 2022 and seems to know when exactly to buy and sell Ethereum.
Notably, this smart money whale has been buying Ethereum at low points and selling at higher prices between Nov 21, 2022, and May 23, 2024, with a total profit of more than $38 million. The whale’s recent purchases, despite the ongoing market downturn, suggest a level of confidence and insight that has proven accurate in the past.
A smart money with a 100% win rate bought 4,000 $ETH($12.58M) again 5 hours ago!
This smart money bought and sold $ETH 7 times from Nov 21, 2022 and May 23, 2024, buying at low prices and selling at high prices each time, with a 100% win rate and a total profit of more than… pic.twitter.com/3fnCkyfmQT
— Lookonchain (@lookonchain) August 2, 2024
What’s Next For Ethereum?
As of the time of writing, Ethereum is trading at $2,900, marking a significant decline of 12% over the past seven days. This sharp downturn has triggered substantial liquidations in the market. According to data from Coinglass, $78.72 million worth of ETH long positions were liquidated in the past 24 hours alone.
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While the crypto’s drop below $3,000 is worrisome for investors, bullish hope might not be lost yet. The $3,000 price point is a critical support level backed by substantial on-chain activity. Data indicates that over 1.7 million addresses acquired Ethereum just below this level, highlighting a robust area of buying interest. This means $3,000 is still a strong support level for ETH, which might prevent further losses in the coming week.
Featured image from CNBC, chart from TradingView