The digital asset industry operates in phases. The highs (prices of cryptos shooting over the roof) are accompanied by the lows (prices of cryptos dropping, sometimes to their lowest).
Accordingly, investors often seek to accumulate more tokens during the lows to expand their asset portfolios in anticipation of the next bull run.
Ethereum Suffers Massive Decline as Whales Hovers
Over the past week, the broader crypto market witnessed huge losses following the surprise collapse of the FTX exchange. Moreover, with the extreme macroeconomic situations fueled by the US Federal Reserve interest rate hikes, the crypto market continues to feel the impact of the Fed’s actions.
Meanwhile, the second-largest crypto asset, Ethereum, has plunged into one of its lowest moments, triggered by the market’s steady decline. Ethereum slipped under the $1,600 price mark to $1,081, losing almost 24% during the weekend.
Thus, Ethereum whales are taking advantage of the bearish market trend to accumulate more ETH tokens. At the time of writing, the whales have accumulated over $1 billion worth of the token over the past 24 hours. Thus, ETH’s price has dropped below its support level.
According to data from the crypto tracking platform, Santiment, the whales have accumulated close to 947,940 ETH, worth more than $1 billion at the current market value. Moreover, the percentage of Ethereum supply indicates that the whale’s move is the most significant accumulation in a single day over the past year.
Also read:During the previous accumulation periods, the price of Ethereum spiked by an average of 3.2% against Bitcoin. For their part, BTC whale accumulation at the support zones is often followed by a bullish price movement.
However, the result this time is the opposite. According to analysts, Ethereum is already impacted by the FTX contagion, which has hit the broader crypto ecosystem.
The former CEO of FTX, Sam Bankman-Fried’s trading firm, Alameda Research, is reported to have moved many ETH tokens to FTX to stabilize the situation. But the attempt failed, as FTX and Alameda Research filed for bankruptcy some days later.
Two Top Crypto Coins Dropped to New Lows
As a result of the unfortunate events, the price of Ethereum continued to tank as the market crisis caused its price to slip down its support levels before the whale’s accumulation spree started. Ethereum is currently trading at $1.155, with some modest gains.
Notwithstanding, Ethereum has displayed signs of recovery, with its value rising by 2% over the past 24 hours. By comparison, the performance of the largest crypto coin, Bitcoin, within the same period is underwhelming.
The leading cryptocurrency is down to a four-month low of $17,376, according to current Coinmarketcap data. For most of the year, Bitcoin has been the arrowhead of market instability.
Unfortunately for Bitcoin, there is no end in sight for its downward slope as it hits its weekly low on Monday, triggering another bloodbath for the crypto market.
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