Ethereum Price Plunge Sparks Major Whale Accumulation, Signaling Potential

Ethereum,
the
second-largest
cryptocurrency
by
market
capitalization,
experienced
a
precipitous
12.8%
plunge,
breaching
the
$3500
mark
during
Monday’s
U.S.
trading
session.
This
sharp
descent
came
on
the
heels
of
Bitcoin’s
struggle
to
maintain
stability
above
the
$100k
threshold
and
a
sweeping
$1.52
Billion
liquidation
across
the
cryptocurrency
market.
Despite
the
significant
pullback,
a
surge
in
hefty
accumulation
by
‘whales’—the
term
used
to
describe
individuals
or
entities
owning
large
quantities
of
a
cryptocurrency—hinted
at
a
potential
bullish
reversal.

According
to
data
from
Coingecko,
the
worldwide
cryptocurrency
market
capitalization
stands
at
$3.6
Trillion,
having
suffered
an
intraday
loss
of
7%.
Meanwhile,
the
24-hour
trading
volume
hovers
around
$483.2
Billion.

Historical
data
on
Ethereum’s
price
trajectory
in
the
last
month
of
the
year
suggests
optimism
for
ETH
holders.
Notably,
a
prominent
crypto
whale
has
added
an
additional
1,800
ETH
to
their
portfolio—a
move
approximated
at
$7
million.
This
purchase,
disclosed
by
on-chain
data
from
Lookonchain,
has
swelled
the
whale’s
total
holdings
to
39,600
ETH,
equivalent
to
an
estimated
$99
million,
since
May
24.

The
average
purchase
price
for
this
whale’s
ETH
stands
at
$2,487,
placing
them
in
a
favorable
position
with
an
impressive
unrealized
profit
margin
of
$54
million.
This
pattern
of
strategic
accumulation,
particularly
noticeable
during
the
recent
price
dip,
underscores
the
whale’s
continued
adherence
to
the
‘buy-the-dip’
sentiment,
reflecting
their
confidence
in
Ethereum’s
future
growth.

Historically,
such
whale
accumulation
has
often
led
to
the
cryptocurrency
finding
a
bottom
and
rebounding
shortly
thereafter.

From
the
November
low
of
$2,350
to
a
high
of
$4,098,
Ethereum
showcased
an
impressive
73%
rally.
A
careful
analysis
of
the
daily
chart
reveals
that
this
rally
decisively
broke
through
the
resistance
trendline
of
the
8-month
correction,
signaling
the
continuation
of
the
prevailing
uptrend.

Currently,
the
ETH
price
is
trading
around
$3,682,
testing
the
breached
trendline
as
a
support
point
before
making
its
next
upward
move.
Data
from
Coinglass
indicates
that
Ethereum’s
performance
in
December
has
historically
been
mixed,
with
both
significant
gains
and
losses
recorded
in
previous
years.

In
2020
and
2017,
Ethereum
yielded
notable
returns
of
+19.46%
and
+70.54%
respectively.
Conversely,
the
cryptocurrency
saw
substantial
declines
in
2021
(-20.61%)
and
2019
(-15.09%).
However,
December
tends
to
lean
slightly
on
the
bullish
side,
recording
an
average
growth
return
of
7.95%.

While
the
cryptocurrency
market’s
volatility
can
sometimes
lead
to
jarring
price
swings,
these
trends
and
patterns
offer
important
insights
for
investors,
traders,
and
anyone
with
a
stake
in
the
exciting
world
of
digital
currencies.