Smart Trader Acquires $68 Million Worth of Ethereum by Buying the Dip
In the current market environment characterized by bearish sentiment, traders and investors are eyeing substantial acquisitions of Ethereum (ETH) following a noticeable price decrease. On August 3, 2024, lookonchain, an on-chain analytics firm, reported that a savvy trader boasting a flawless 100% success rate had procured a significant 2,424 ETH valued at $7.22 million.
Moreover, this same trader had purchased 4,000 ETH amounting to $12.58 million just 24 hours earlier. Data from lookonchain reveals that since May 29, 2024, this trader has accumulated 19,436 ETH valued at $68.25 million subsequent to the approval of spot Ethereum Exchange Traded Funds (ETFs). Notably, the average price at which this substantial ETH was acquired stands around $3,587.
The ongoing accumulation by this astute trader serves as a strong indicator of a prime buying opportunity. The rationale behind this significant accumulation likely stems from the recent sharp decline in ETH’s price. Some market participants view this scenario as an opportune moment to buy, while others opt to offload their holdings. This development mirrors the aftermath of the approval of spot Bitcoin ETFs in the United States, where the market initially witnessed a substantial downside before transitioning to a bullish phase, propelling cryptocurrencies to significant gains.
In the current landscape, ETH is trading close to the $2,930 mark, having endured a price drop exceeding 3.4% within the past 24 hours. Concurrently, trading volumes have receded by over 20% during this period, signaling reduced engagement from investors and traders amid bearish market sentiment.
Technical analysis indicates that ETH is positioned at a critical support level of $2,900 and appears to be forming a bullish double-bottom price action pattern coupled with a bullish divergence in the Relative Strength Index (RSI). Historical data reveals that every time ETH has reached this level since April 2024, it has triggered a substantial upward movement. Consequently, there is a prevailing expectation among traders and investors of a potential surge towards the $3,150 threshold if historical patterns repeat themselves.
In conclusion, as market dynamics continue to evolve, the recent actions of this adept trader in accumulating significant quantities of ETH underscore the potential for a bullish turnaround in Ethereum’s price trajectory, offering insights into the sentiments and strategies prevailing within the crypto market landscape.
