- Ethereum’s native cryptocurrency token is in free-fall mode
- ETH has dropped almost 30% in the last week
- But that hasn’t stopped “non-exchange” whales from buying the dip
ETH Whales: Keep Calm & BTFD
On-chain metrics and cryptocurrency market insights provider Santiment has an exciting update for Ethereum bulls. Despite the bearish wormhole that Ether, the public blockchain’s native token, is getting dragged into, buying is on. And who are these buyers exactly?
Data from Santiment shows that these are whales, the kind not usually seen on crypto exchanges. Rather than holding their digital assets on exchanges, they choose to store them in their private wallets. Which means they are in for the long haul. Not just to make a quick buck or two.
The richest top-10 non-exchange whales are holding immense ETH tokens, with their stash size rising continuously. Ether’s latest sell-off hasn’t perturbed these deep-pocketed investors one bit. It’s just the resident exchange whales that are offloading their ETH holdings in the market. But according to one Bitcoin perma-bull, that may not be entirely true.
“The $ETH gigachad on Bitfinex has bought >250k ETH on margin so far and is still buying…” Bitcoin bull and Altana Digital Currency Fund CIO Alistair Milne tweeted this today. “This is within the last 24hrs Assume they are positioning in advance of the upcoming hard fork in July (?)”, he added further.
Not just him, several observed the rampant ETH exchange whale buying trend on Bitfinex. Economist and trader Alex Kruger noticed how exchange whales are trying to stop prices from falling further by putting up a massive buy wall.
May Crash Support Retested
Bears are raining hell on the Ethereum token. The ongoing Bitcoin and Ethereum mining crackdown in China could be the most probable reason behind the current market conditions. Miners are selling off their holdings to cover costs and insulate themselves against losses as revenues taper.
Glassnode pointed this out in one of its latest updates. According to the blockchain market data platform,” #Ethereum$ETH Miner Revenue just reached a 3-month low of $1,157,026.48″, and “Previous 3-month low of $1,171,824.27 was observed on 20 June 2021”.
Technically charts show the ETH/USD pair retesting the $1,750 support formed after the epic May crash. Ether has slipped below the critical 200-day moving average (MA) line on the daily chart and is way down below it on the 4-hour chart.
The RSI (Relative Strength Indicator) number has touched the range bottom (30), representing that selling pressure is overwhelming buying pressure.
MACD (Moving Average Convergence Divergence) indicator is still under the influence of a bearish crossover. It looks like it will continue to stay this way until buyers pick up on the news of the upcoming Ethereum London hardfork going live on testnets on June 24.
Hopes High On London
Last week core Ethereum developer Tim Beiko apprised his followers of how it will all come together.
“Next week, Ropsten will upgrade, followed by Goerli & Rinkeby the weeks after.”, he said in a tweet.
The London hardfork upgrade will bring alive five Ethereum Improvement Proposal (EIP) upgrades, including the crucial EIP-1559. EIP-1559 will radically transform the blockchain’s fee structure which will make the network user-friendly and scalable.
Speaking of scalability, the scheduled upgrade is a stepping stone towards Ethereum’s conversion from a Proof-of-Work (PoW) based platform to Proof-of-Stake (PoS). It has acted as a bullish catalyst for ETH’s long-term price appreciation for many months now.