- Ethereum went below the $1,200 mark for the first time following the FTX collapse.
- According to Santiment, the Ethereum whales are now at it again with crypto accumulation.
- The 5% surge in Ethereum’s price over the day happened relatively quickly.
ETH, the second largest cryptocurrency by market cap, went below the $1,200 mark for the first time since the FTX collapse last Friday. However, Ethereum quickly bounced back over this support level early on Sunday.
ETH is now slightly above this support level at the time of writing, at $1,270, after a 5.1% rise over the last day, according to data from CoinMarketCap.
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However, the impressive aspect of Ethereum’s performance over the last day is not its price.
It is the way its whales have taken an interest in Ethereum accumulation and are now in a “buy and hold” frenzy, as noted by Santiment.
Ethereum Whales Enter Accumulation Mode
According to a tweet from the crypto market intelligence platform Santiment, the Ethereum whales are now at it again with crypto accumulation.
Santiment notes that the ETH “key addresses” (or whales) have been growing since the FTX debacle. Santiment also shared a chart showing the key moments when the whales accumulated and dumped.
They also noted that the number of addresses holding 100 -100,000 ETH is now at a 20-month high.
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According to the snapshot shared by Santiment, the 5% surge in Ethereum’s price over the day happened in a relatively short period. They also noted that the November shark and Whale accumulations are beginning to pay dividends.
However, something interesting about the chart shared by Santiment (pictured above) is that right after the accumulation phase leading up to the Ethereum merge in mid-September this year, the whales went ahead and dumped their ETH holdings. This sudden dump of Ethereum coins into the market caused what is now known as the “post-merge dip,” in which ETH fell from its $1,700 high to a low of about $1,250.
Since the FTX debacle in early November, the whales have been at it again and are likely to pull off something similar.
In an earlier tweet on 22 November, Santiment also noted that the whales added 947,940 more ETH to their holdings. This single accumulation phase that spanned a single day was worth about $1.03 billion and was the largest single-day add-in over a year.
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Ethereum (ETH) Price Analysis
ETH in the charts has been bullish over the last 24 hours. After rising from an intra-day low of $1,205.48, the second-largest cryptocurrency hit a high of $1,276.18 and is now normalizing around the $1,271 zone. This rise from its daily opening price to where the cryptocurrency now sits has been a 5.2% rise to the upside.
After losing its footing around the $1,270 zone earlier in the month after the FTX debacle hit the cryptocurrency, ETH fell to the $1,077 zone. However, after several attempts of the cryptocurrency to break above this $1,270 zone over the last three weeks, it appears that Ethereum is succeeding.
After hitting a $1,150 low on Monday this week, Ethereum printed a green bullish engulfing candle on Tuesday and has now crossed the $1,270 zone again with its Wednesday candle.
For a clear and confirmed breakout above the $1,270 zone, the Wednesday daily candle has to close above this point.
If the bulls maintain the price of the cryptocurrency above this level, a rally to the $1,680 – $1,780 zones or even further to the $2,020 zone can be expected.
Notably, the MACD on the daily chart printed a bullish crossover, indicating that the bulls have managed to wrestle control out of the hands of the bears.
The bulls now have slightly improved chances of pushing the price of Ethereum higher, depending on whether they can create and maintain a daily candle close above this important resistance zone.
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.