Ethereum is on the move. The cryptocurrency market frequently experiences highs and lows. And the lows of the FTX crash are having quite some interesting effects on the market and its participants. Whales and other investors are now taking advantage of these to fill their portfolios with assets in preparation for the upcoming bull run.
Following the FTX collapse, the cryptocurrency market has experienced significant losses over the last two weeks. And the extreme macroeconomic conditions that have developed since the Fed raised interest rates are making issues worse.
However, according to the crypto analytics firm Santiment, the Ethereum whales are reacting to these harsh economic conditions differently from how one would expect them to.
Santiment notes that the Ethereum whales have begun accumulating Ethereum (among other cryptocurrencies) and are preparing for something huge.
In the weeks following the FTX crash, Ethereum suffered multiple setbacks. The cryptocurrency has lost about 24% over the past few weeks, falling below $1,600 to $1,081.
However, despite the massive dip in cryptocurrency, the whales appear to be taking advantage of the latest developments. Over the last few weeks, they have accumulated over $1 billion worth of ETH.
Santiment, in a tweet, noted that active shark and whale addresses are still accumulating the cryptocurrency, now when the price is less than a quarter of what it was at its all-time a year ago.
Santiment also notes that in October and November 2020, whale and shark ETH addresses assisted in pushing Ethereum into a +50% bullish move to the upside in 5 weeks, as illustrated above.
Similarly, Santiment also notes this has been happening over the last three weeks. The whales have managed to buy back about 1.9% of Ethereum's total supply and have shown no signs of stopping soon.
Nearly 947,940 ETH (or over $1 billion at the current market price) has been accumulated by the Ethereum whales and sharks. Prior earning periods also saw an average 3.2% price increase in Ethereum relative to Bitcoin.
Ethereum's price is starting to show signs of recovery from its initial crash at the time of writing. Since falling to $1077 from its $1,600 high, Ethereum has hit the $1,200 zone and trades at $1,210 at press time.
The cryptocurrency appears bullish today and has risen by 4% over the last day alone. However, although Ethereum seems bullish enough from an intraday perspective, over the previous week, the cryptocurrency has only gained less than 0.6% and is still struggling to reclaim its prior levels.
As illustrated above, the 4% move to the upside on Ethereum has taken the cryptocurrency up and towards the $1,200 support where it currently tests.
On the 4-hour chart, the lower Bollinger band sits at the $1,070 zone that served as the cryptocurrency's bottom in the crash last two weeks. The price action of Ethereum has broken through the middle Bollinger band and is now testing the upper Bollinger band around the $1,200 zone.
The bears are likely waiting for the bulls at this critical psychological level, and the $1,200 zone might be challenging to break. The RSI on the daily chart and the 4-hour chart trend towards oversold conditions and support the theory that $1,200 may be a stiff resistance to damage.
However, if Ethereum manages to break and close above this price level, it would open the door to so many other bullish price possibilities, bringing us to the following:
Ethereum on the weekly chart appears technically strong. The cryptocurrency is still oversold from a weekly perspective but has a green candle on its way to engulfing the previous week's candle.
According to Chainalysis, since the hacker behind the FTX exploit transferred monies, they stole from FTX in ETH. Then they converted over $72 million worth of ETH into BTC using the renBTC Gateway, and the price of Ethereum has been on shaky ground.
And if the selling from Ethereum's technical shakiness keeps up, the rebound will be stifled by overhead pressure.
However, the first step for Ethereum to claim the $2,000 zone again would be to break and close above the $1,200 zone before worrying about others like the $1,500 and $1,700 resistance.
Overall, Ethereum's future in terms of price is fascinating to watch and speculate about.
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