Recent price movements in the cryptocurrency market have taken a toll on Ethereum, with the altcoin finally breaking 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.
While retail traders scramble for their next move, on-chain data reveals an intriguing development: a particular whale entity has been accumulating ETH. This whale, whose strategic moves have historically demonstrated a flawless 100% investment win rate, has been steadily increasing its holdings of ETH for the past two months.
According to on-chain data noted by Lookonchain on the social media platform X, this smart money whale has been exploiting the recent ETH price drop to bolster its holdings. As revealed by the on-chain tracker, the whale recently purchased another 2,424 ETH worth $7.22 million at the time of purchase. This latest acquisition brings the whale’s total purchases to 19,436 ETH worth $68.25 million, averaging $3,511 per ETH since May 29. As of now, the smart money whale is sitting on nearly $8 million in unrealized losses.
At first glance, this aggressive buying approach may seem risky, particularly given the prevailing bearish sentiment surrounding Ethereum. However, historical data suggests this whale might actually have a better grasp of the market dynamics than most. This particular whale boasts a track record with a 100% win rate since November 2022 and appears to know precisely when to buy and sell Ethereum.
Notably, this smart money whale has been buying Ethereum at low points and selling at higher prices between November 21, 2022, and May 23, 2024, accumulating a total profit of more than $38 million. The whale’s recent purchases amidst the ongoing market downturn indicate a level of confidence and acumen that has proven accurate in the past.
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.
While Ethereum’s drop below $3,000 is worrisome for investors, bullish sentiment might not be entirely extinguished. 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 suggests that $3,000 remains a strong support level for ETH, potentially preventing further losses in the coming week.
