Ethereum’s price has fallen below $3,400 for the first time since August, but large investors appear to have turned this correction into a buying opportunity. Data shows that whales have been accumulating vast amounts of ETH within a short window.
The accumulation coincides with Ethereum recording a new network throughput milestone, which adds further strength to the argument that the cryptocurrency is still solid even during the price weakness.
Whales Scoop Up $1.12 Billion Worth Of ETH In 48 Hours
Data from the on-chain analytics platform Lookonchain shows that some Ethereum whale addresses have accumulated a combined 323,523 ETH, valued at approximately $1.12 billion, within the past 48-hour period.
One of the biggest purchases came from a whale who bought 257,543 ETH, worth about $896 million, at an average price of $3,480 per ETH. Another cluster of addresses, referred to as the “seven siblings” by Lookonchain, collectively added 37,971 ETH worth $133 million at an average price of $3,515.
The data also revealed participation from a whale known for swing trading Ethereum through over-the-counter deals, who acquired 14,004 ETH for about $45.5 million. This address bought these ETH at an average price of $3,247, which was exactly around the recent price low.
Two newly created wallets also bought 10,000 ETH and 4,005 ETH, respectively, totaling more than $47 million combined. In total, whales accumulated 323,523 ETH at an average price of $3,469, showing how most of them are capitalizing on the price break below $3,400.
Price Weakness Might Be Setting Stage For Breakout
Although Ethereum’s drop might have unsettled some traders, the whale accumulation might be pointing to optimistic days ahead. The large-scale accumulation below $3,400 has contributed to the successful defense of $3,200. This follows the trend of accumulation leading to maintenance of support levels.
If ETH maintains stability above $3,200 support and on-chain activity continues to climb, then the price could rebound above $4,000 before the end of the month. The first step, however, in this is for Ethereum to reclaim $3,800 and register a strong weekly close above the level.
Interestingly, Ethereum’s network performance has maintained its level of robustness despite the market’s correction. The blockchain ecosystem recently achieved a new record throughput of 24,192 transactions per second (TPS), setting a new benchmark for activity across the network.
Featured image from iStock, chart from Tradingview.com
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