Ether (ETH) whales and sharks are back in action after the general price drop caused by the FTX crash and are in a similar accumulation process to the one that fueled the over 50% increase in the price of ETH in 2020. Data analysis firm on the chain Santiment in a post shared on Twitter.
Headlines for sharks and whales from # Ethereum It continues to accumulate at prices less than a quarter of its levels # All time from a year ago. In October 2020, those addresses range from 100 to 100,000 ETH dollars Help pay ETH dollars To increase the price by +50% in 5 weeks. pic.twitter.com/pcoFb6Uav0
– Santiment Portuguese (santiment_pt) November 23, 2022
In the past three weeks, which coincided with the unfolding bankruptcy crisis that led to the bankruptcy of Sam Bankman-Fried (SBF) cryptocurrency exchange, Ether addresses holding between 100 and 100,000 ETH absorbed 1.9% of active trading.
In 2020, a similar move, these same entities accumulated a total of 2.1% of the circulating supply of ETH in five weeks, and the price rose from $340 in early October to $510 in mid-November, as can be seen in the chart below. .
ETH/USD daily chart from Oct 7 to Nov 20, 2020. Source: TradingView
Earlier this week, Santiment tracked a total of $1.03 billion in ether acquired by whales in just one day. The amount represents the fifth largest one-day buying volume in 2022.
Relatively speaking, the recent accumulation of ether whales has had little effect on the price of ethereum over the past three weeks. On November 5, the ETH/USD pair was trading at around $1,600, while on Saturday afternoon, the 26th, it was trading at $1,210 — a drop in the coin’s value of nearly 24%, according to data from CoinMarketCap.
However, since hitting a local low of $1075 on Tuesday the 22nd, ETH has accumulated a gain of 12.5%, providing some encouragement to the bulls that the October-November 2020 rally may repeat itself.
As recently reported by Cointelegraph Brasil, a bearish channel on the 4-hour chart is pressuring ETH price, which is creating a strong resistance at the $1200 area. Thus, according to analyst Marcel Bichmann, there is currently no indication that the bulls can turn the tables to reverse the downward trend.
The death of cryptocurrencies
Interestingly, this week Santiment also showed that market sentiment may have reached levels that in previous bearish cycles characterize the price bottoms of cryptocurrencies such as Bitcoin (BTC) and Ether itself.
As Santiment’s November 22 post highlights, it is only when the term “death” is strongly associated with cryptocurrency that the market begins to recover.
Word #dead It was circulated on the platforms # encrypt In November. As one of the most emotional words #bearish This is a sign that traders are giving up on the recovery of the markets. Ironically, this capitulation occurs historically when markets are rising. pic.twitter.com/DR2kjQgZ3I
– Santiment Portuguese (santiment_pt) November 22, 2022
The views, ideas and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.