The crypto market has suffered due to the collapse of the crypto exchange FTX, but Ethereum witnessed more selloffs during the crash. The ETH price tumbled from $1,661 to $1,081 within a month, with chart patterns continuing to deteriorate. Meanwhile, Ethereum whales took the opportunity to add over $1 billion worth of ETH as the price dips to a key support level.
Ethereum Whales Buys the Dip
According to the on-chain platform Santiment, large Ethereum whales have added almost 947,940 ETH worth over $1 billion on November 21. The Ethereum (ETH) Percentage of Supply Held data reveals it is the 5th largest single-day whale accumulation in the past year.
In the past 4 instances, ETH prices surged at an average of 3.2% against Bitcoin. Whales accumulating Bitcoin at support levels are considered a key bullish indicator of a reversal. However, Ethereum still consolidates due to FTX contagion.
Ethereum is immensely impacted by the FTX crisis as the crypto exchange faced ETH shortages causing a liquidity crunch. In fact, FTX CEO Sam Bankman-Fried’s Alameda Research transferred massive amounts of ETH to the crypto exchange. However, both filed for Chapter 11 bankruptcy.
Moreover, FTX Accounts Drainer started siphoning off crypto assets from FTX wallets and converting all to Ethereum. It raised speculation of whether the drainer address belongs to FTX or SBF. However, the FTX Accounts Drainer doesn’t seem to be related to any party as it dumped Ethereum for Bitcoin.
Therefore, ETH price continued to drag lower amid the FUD of FTX Drainer selling ETH holdings. However, whales have now entered as speculation fades slowly. The ETH price could jump from current levels.
ETH Shows Signs Of Recovery
Ethereum price hit a low of $1,081 today. The 24-hour low and high for ETH are $1,081 and $1,140, respectively. At the time of writing, the ETH price is trading at $1,113, down nearly 1% in the last 24 hours. However, the price has slightly jumped 2% in the last few hours.
The post Ethereum Whales Buys The Dip, Adds ETH Worth Over $1 Billion appeared first on CoinGape.
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