Ethereum Price Recovers 11% As ETH Whales Step In Keeping Price Above $3K

Key Takeaways

• Ethereum price drops; whales seize buying opportunity.
• Whale purchases hint at potential trend reversal.
• Recent recovery suggests possible upward movement.

The recent market downturn saw significant price drops across cryptocurrencies, including Ethereum (ETH).  With its price already in a downtrend from April 9, this market-wide crash accentuated the drop, leading to a low of $2,852 on Saturday. 

Despite the decline in their values, large-scale investors or “whales” seized the opportunity to expand their holdings. This may be why ETH recovered by 11% on April 15, coming to $3,284. 

Could this accumulation by whales potentially catalyze a trend reversal for ETH? 

Ethereum Whales Step Up Their Game

Lookonchain  tweeted about a whale purchasing approximately 23,790 ETH for 70 million USDC at $2,942, marking a potential buying opportunity at lower prices. Historically, such purchases have been followed by increased Ethereum’s value which was also the case in this instance. 

Data from Santiment showed a notable rise in whale transactions, suggesting a strong buying sentiment among these large-scale holders. The supply of Ethereum held by top addresses also increased, indicating active acquisition by whales.

Such substantial accumulation by whales could signal a positive outlook for Ethereum, potentially leading to a large price recovery.

Ethereum (ETH) Price Analysis 

On March 11, Ethereum breached the $4,000 mark, peaking around $4,100, marking the high point of its last uptrend. Since then, it has entered a decline, falling to $3,062 by March 20 at first. A subsequent recovery saw Ethereum’s price climb to $3,730 by April 8.

There was a possibility of further upward movement, but since April 8, we have seen a sharp downturn, confirming the assumption that Ethereum is in its corrective stage. On Saturday, April 13, ETH fell to a low of $2,840, the same length as the previous downtrend. 

As it did, it could mean that the ABC correction ended, with the price recovery of April 15 signaling the start of a new upward advance. Alternatively, the rise coule be a temporary reaction to the oversold conditions signaled by the daily chart Relative Strength Index and the large wick on the candle close. 

This possibility would be high if we see the recovery taking place, with Ethereum regaining momentum. However, if the price gets rejected below $3,300, it could fall to $2,400. 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

About the Author

Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

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