Why Ethereum Top Whales Are Accumulating ETH In ‘Abnormal’ Way

Christian Encila

2 years ago

2 mins read

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Following FTX’s demise, Ethereum and the whole cryptocurrency industry in general experienced one of its most challenging periods. Because of this, the value of ETH, a significant alternative currency, has plummeted by over 36% in the last week.

Bearish emotion may be pervading over the cryptocurrency market, but the second most popular cryptocurrency is now trading almost sideways. But @sanr king, a contributor to Santiment’s insights, has been thinking about this pricing stability.

One should view his observation of a heavy influence from whales in the market with caution, as this is often a precursor to a more severe bear market. Now, what does the ETH chart reveal?

ETH Prognosis: Dark Clouds Ahead

According to @sanr king, the present market model cannot account for the whales’ “abnormal” accumulation period. This is risky since it suggests the coin is fairly priced in relation to the market as a whole.

To recapture bullish momentum, ETH will need the market to correct its overvaluation, which is currently a tall order given the current bearish trend. After losing 6.4% over the past week, ETH’s price is establishing a double bottom in front of the previous price movements.

This bearish formation occurs following a retreat, which transpired in the $1,214 price range in this instance. The latest price movement is barely above the 23.60 Fibonacci retracement line.

A breach below this Fibonacci level would confirm a bearish break and bolster the market’s existing bearish momentum.

The fact that investors are more ready to HODL than sell, reflecting a high level of investor confidence in the present market direction, does not help matters. Which in this instance is a decline.

ETH Bears Take The Driver Seat

The current position is unlikely to improve in the near future, as a decline is more likely to occur than a rebound. Even though RSI values are rising over the long haul, the CMF value of -0.18 indicates a complete bear market takeover.

As the scenario worsens in the next days and weeks, the crypto sector will endure a great deal more of suffering. ETH will soon lose its footing at $1,200 and could fall to the $1,100 range.

ETH total market cap at $147 billion on the daily chart | Featured image from Watcher Guru, Chart: TradingView.com

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.