Ethereum Price Plunges 4.5% as Major Investors Capitalize on Dip
The Ethereum price has plunged 4.5% in the last 24 hours to trade at $2,570 as of 6:13 a.m. EST on a 59% surge in the trading volume to $16 billion with a market cap reaching $311 billion. Despite the drop in ETH price, a major crypto investor has been observed buying up large quantities of Ethereum (ETH), potentially capitalizing on the recent dip in prices.
According to blockchain tracking firm Lookonchain, an Ethereum wallet starting with “0x78D07” acquired over $4.7 million worth of ETH last Friday, bringing its total holdings to nearly $100 million.
A whale bought 1,800 $ETH($4.7M) again 30 minutes ago!
This whale has accumulated 37,800 $ETH($99M) since May 24, with an average buying price of $2,420, and currently has an unrealized profit of $7.5M.https://t.co/OQ10QrT6IQ pic.twitter.com/Ehow9crtov
— Lookonchain (@lookonchain) August 9, 2024
Since May 24th, this investor has amassed 37,800 ETH (valued at $99 million) with an average purchase price of $2,420 and currently holds an unrealized profit of $7.5 million. Lookonchain also identified another “smart money” investor with a flawless track record of profitable trades, who has bought approximately $70 million worth of ETH since late May.
On-chain data reveals that this successful investor acquired ETH from Binance, the world’s largest crypto exchange, including a recent purchase of 2,424 ETH ($7.22 million). Since May 29th, this whale has bought 19,436 ETH (worth $68.25 million) at an average price of $3,511.
Ethereum Price Statistics
- Ethereum price: $2,570
- Market cap: $311 billion
- Trading volume: $16 billion
- Circulating supply: 120 million
- Total supply: 120 million
Bulls Find A Stable Anchor for a Bullish Recovery
The market has been under significant pressure, with bears almost pushing the price down to the $2,343 thousand support level. However, as the price approached this support zone, bulls took charge and drove it back up. This rebound hints at a possible bullish reversal, indicating that the market might be transitioning from a bearish to a bullish trend, even though bears are still attempting to reclaim control.
The daily chart displays strong indications of a potential bullish crossover. The market is currently climbing and approaching key resistance levels, notably the 50-day and 200-day simple moving averages (SMAs). A successful breach of these SMAs would enhance the likelihood of a bullish crossover signal. Should the bulls continue to push the price significantly above these SMAs, it would solidify the overall bullish trend.
The Relative Strength Index (RSI) also supports this bullish scenario. The RSI is holding above the 30-oversold level and is forming a slight uptrend towards the 50 mid-line. A rise above the 50 mid-line would signal increased buying pressure and further validate the bullish sentiment.
Furthermore, the moving average convergence divergence (MACD) supports a bullish outlook. The MACD line (blue) is rising and poised to cross above the signal line (orange), which is currently declining. Additionally, the red histogram bars are diminishing in both color intensity and size, indicating a reduction in bearish momentum and reinforcing the potential for a bullish rally. This confluence of indicators suggests an increased probability of a significant bullish crossover and a strengthening market trend.
Ethereum Price Prediction
The recent price action reveals a strong bullish presence, particularly after the market found support at the $2,343 level. This consolidation at the support suggests that bulls are regrouping and positioning for a potential rally. Their target is to push the price up to $4,359, indicating confidence in a significant upward movement.
However, the bears are also active. If they succeed in sustaining their current pressure, they could potentially drive the price down to $1,536. This scenario would reflect continued bearish momentum and could signal a deeper correction or shift in market sentiment.
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Charles Kibue
Charles Kibue is a cryptocurrency researcher and writer with published works on Crypto2Community and a range of other sites. He has also worked as a technical writer, researching NFTs and crypto projects. Charles is an English Literature graduate residing in Kenya. He possesses additional expertise in market analysis and offers accurate and reliable insights, staying up-to-date with the latest developments in the crypto industry. Beyond his professional pursuits, Charles enjoys hiking and horse riding in his leisure time.
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