Is Ethereum’s Recent Price Drop a Chance to Buy? This Large Investor Believes So

The cryptocurrency market has recently witnessed a downturn, particularly with Ethereum experiencing a notable drop below the critical $3,000 support level. Over the past 24 hours, Ethereum has seen a significant 4.76% decline, bringing its current trading price slightly above $2,900.

Retail traders are currently navigating their next moves as on-chain data reveals an intriguing accumulation trend of Ethereum by a specific whale entity. This particular whale, known for its strategic prowess and a remarkable 100% investment success rate, has been steadily increasing its ETH holdings for the past two months.

This smart money whale has capitalized on the recent ETH price decline to enhance its position further. Recent data indicates that the whale acquired an additional 2,424 ETH valued at $7.22 million during its latest purchase. Since May 29, this whale has accumulated a total of 19,436 ETH valued at $68.25 million, averaging $3,511 per ETH. Despite holding nearly $8 million in unrealized losses at present, the whale’s buying strategy reflects confidence in Ethereum’s potential.

While the whale’s aggressive buying approach may appear risky amid the prevailing bearish sentiment surrounding Ethereum, its track record suggests otherwise. The whale has consistently bought Ethereum at low points and sold at higher prices between November 2022 and May 2024, amassing profits exceeding $38 million.

Looking ahead, Ethereum is currently trading at $2,900, reflecting a significant 12% decline over the past week. This sharp downturn has triggered substantial liquidations in the market, with $78.72 million worth of ETH long positions liquidated in the last 24 hours alone.

Despite concerns stemming from Ethereum’s drop below $3,000, there remains a glimmer of hope for bullish investors. The $3,000 price level serves as a critical support level supported by substantial on-chain activity. Data indicates that over 1.7 million addresses acquired Ethereum just below this level, indicating strong buying interest. This collective activity suggests that $3,000 continues to serve as a robust support level for ETH, potentially preventing further losses in the near future.