1-Inch, the decentralized crypto exchange (much like Uniswap) has been making some pretty big moves lately, in the Ethereum space this year.
It turns out that since January, the DEX's investment fund has been buying and accumulating massive amounts of ETH despite the crypto bear market, and there are a few things you should know.
According to a recent tweet from the on-chain data aggregator, LookOnChain, 1-Inch has been making some pretty strategic investments in ETH since January this year and has been raking in massive amounts of profit.
LookOnChain mentioned in the tweet, that the 1-inch Investment Fund's wallet bought a total of 17,000 ETH (worth a whopping $26.8 million) at an average ETH price of $1,569 on 13 January, 9 February, and 14 March earlier in the year.
On July 5, they sold 11,000 ETH tokens at an average price of $1,906, making approximately $3.7 million in profit.
On Monday this week, however, LookOnChain highlighted another ETH purchase from the same wallet.
It turns out that 1Inch has spent another $10 million this week, on another 6,088 ETH at an average price of $1,655.
Normally, whenever an entity or individual makes such a large purchase, it usually means that they expect the price to rise.
Will we see some interesting price action soon?
This leads us to:
Ethereum's dip on Thursday last week brought it straight below the $,640 support.
However, the bulls were quick to action and pushed the cryptocurrency's price back up over this zone.
Ethereum sitting on this support coincides with 1-Inch buying $10 million worth of at this time.
It is safe to assume that their analysts believe $1,640 to be a fairly strong support. Judging by this, 1-Inch may be betting on Ethereum consolidating for a while at $1,640 and then travelling further upwards from here.
In all, you should know that the RSI is in bear territory, and is showing signs of a bearish crossover between MACD and signal line.
This means that ETH can still trade lower.
Ethereum is trading at $1,638 at the time of writing according to CoinMarketCap, and is down by 0.83% over the last day.
1Inch's performance in the charts is a completely different story from Ethereum's.
One thing you should know is that, unlike Ethereum, 1Inch is generally bearish.
The chart above shows 1-Inch in a descending wedge formation.
However, the general crypto dip last week brought the cryptocurrency into a retest of the wedge's lower trendline.
This indicates that 1Inch has more of a tendency to go up from here.
Descending wedges are more prone to upside breakouts. This indicates that 1Inch may be headed for better days from here.
1Inch is trading at $0.24 at the time of writing according to CoinMarketCap, and is down by 0.6% at the time of writing.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.