Crypto Whale's Actions Spark Market Concerns
Amidst ongoing uncertainties in the cryptocurrency realm, the actions of a crypto whale have raised significant apprehensions.
ETH Price Fluctuations and Whale Transactions
The whale in question recently transferred 12,374 ETH to Compound and subsequently borrowed $31.4 million in stablecoins. Notably, if Ethereum's price falls to $2,984, the whale's long positions will face liquidation. Moreover, Ethereum has experienced a decline from $3,500 to $3,124 within a four-day period. The over 10% drop in ETH's value since Monday has fueled anxiety over potential further declines.
Whales Seizing Opportunities
Despite the cryptocurrency market's downturn, some whales are perceiving this as an opportunity. One prominent whale recently acquired over $30 million worth of 9,425 ETH from Binance. Notably, the whale's cumulative transaction value reportedly surged to $120 million.
The whale's acquisitions included high-volume coins such as BNB, MATIC, LINK, and AVAX, along with leading meme coins including Shiba Inu, Dogecoin, Pepe Coin, and Floki.
Correlation Between Ethereum and Bitcoin
The decline in Ethereum's value exhibits a correlation with Bitcoin's price action. Reports suggest that large investors and miners are contributing to Bitcoin's drop. Market analyst Charles Edwards highlights that long-term Bitcoin holders are actively selling their positions.
Edwards' analysis, based on Glassnode data, reveals a negative flow of 374,000 Bitcoin. The monetary equivalent of this analysis is estimated at $24 billion, indicating a significant movement of BTC toward exchanges.
Ethereum's Future
The potential liquidation of the whale with millions of dollars in Ethereum transactions could amplify market fears. A potential drop to the $2,984 liquidation level could trigger a further decline and exacerbate liquidations.
Amidst these developments, Ethereum continues to attract buyers at the $3,200 level despite today's 5% drop. The market capitalization of ETH has fallen to $376 billion due to the price decline. ETH's trading volume currently stands at $20.7 billion post-sales.