A major Ethereum investor has recently been lauded for trading behavior in bearish markets. This whale used proper techniques to amass its ETH holdings when prices were low and then sell them during the market rise.
As reported, on September 3 and 4, 2022, the whale bought 96,639 ETH at the average price of $1,567 per coin, approximately $151.42 million from Coinbase. When the market started to recover, this entity capitalized on this and liquidated 70,000 ETH, worth around $214.34m, into Kraken on March 6, when Ethereum was at $3,062.
At the time of writing, they left the whale with 26,639 ETH, which equals $68.81 million. This chain of activities led to a profit of approximately $131.71 million. It highlights that profits can be made when the market is well-timed.
The whale鈥檚 actions prove how large entities in the crypto space can manipulate the market, particularly when they place big trades at critical times. Regarding bear markets, buying more assets at cheaper rates can be the perfect way to prepare for high returns once the market situation improves. However, it also shows the potential danger of the approach since not every investor can accurately time the market.
Ethereum Up Over 1% for the Day
Ethereum is still on an upward trend, with a 0.92% increase in its price today, bringing it to $2,583.51. The Market Capitalization has increased to $310.92 billion, showing investors are slightly more optimistic.
Trade value has dropped by 17.83% in the last 24 hours to stand at $11.3 billion. It shows optimism among traders and investors. The volume-to-market cap ratio of 3.65% is active when measured against the total market capitalization.
The current number of Ether coins in circulation is 120.35 million, with a total supply equal to the circulating one. This is typical for Ethereum as it operates with an uncapped issuance model. The fully diluted market cap is in the same range as the current market cap.
This indicates that no new supply shocks are expected shortly. The recent upward movement also aligns with the overall market recovery. Over a dozen cryptocurrencies indicate signs of stabilization after huge fluctuations.
The traders are keen on these trends as many try to seize the opportunities of breakouts or critical resistance levels. If the Ethereum price continues this upward trend, further gains could be made on the cards. However, it is crucial to remember that market volatility should always be expected.
Technical Analysis
From a technical perspective, Ethereum looks good on the price front. On the 4-hour chart, ETH/USDT has been trading inside an ascending channel. It points to the bulls being in control of the market.
It is still trading above some critical levels that we could see as a support zone, especially around the 25600 mark. This recent high of nearly $2,586 indicates that Ethereum is flirting with upper resistance levels, and traders are looking for a breakthrough to possibly retest the $2,600 level at the very least.
The MACD indicator also points to further gains as the MACD stands at a buy signal. The MACD line crossed above the signal line, an uplifting signal that MACD is in the upside direction.
These crossovers and green histogram bars indicate that the buying pressure is still rising. Nevertheless, the MACD also appears to be flattening out. Meaning the current positive momentum may be losing steam if fresh buying supports are not forthcoming.
The market sentiment seems optimistic, with prices plotting a possible path of further growth. If Ethereum can hold its ground within the rising channel, it may experience further improvement. Nonetheless, there is a possibility of a pullback on the channel鈥檚 upper side, as traders should be cautious about resistance.
The critical support levels at $2,500 and $2,480 are essential for continuing the present trend. It shows that many factors are at play in the cryptocurrency market, including the whale鈥檚 strategic trade in the bear market and the recent bullish trends in Ethereum.
Ethereum has appreciated by over 1% today, and its technicals indicate that the asset is on the right track to rebound. However, the general market conditions continue to be a focus, and investors should be careful given the inherent themes of the market.
