The price of Ethereum fell below $3,400 for the first time since August, but large investors appear to have turned this correction into a buying opportunity. The data shows that the whales were accumulate large amounts of ETH in a short window.
The accumulation coincides with Ethereum recording a new network throughput milestone, further strengthening the argument that the cryptocurrency is still strong even during price weakness.
Whales scoop up $1.12 billion worth of ETH in 48 hours
Data from on-chain analytics platform Lookonchain shows that some Ethereum whale addresses have accumulated a total of 323,523 ETH, valued at approximately $1.12 billion, over the past 48 hours.
One of the largest purchases was made by a whale who purchased 257,543 ETH, worth approximately $896 million, at an average price of $3,480 per ETH. Another group of addresses, called the “seven siblings” by Lookonchain, collectively added 37,971 ETH worth $133 million at an average price of $3,515.
The data also revealed the participation of a whale known for swing trading Ethereum via over-the-counter transactions, which acquired 14,004 ETH for approximately $45.5 million. This address purchased these ETH at an average price of $3,247, which is exactly the recent lowest price.
Two newly created wallets also purchased 10,000 ETH and 4,005 ETH respectively, totaling over $47 million combined. In total, whales accumulated 323,523 ETH at an average price of $3,469, showing how most of them are taking advantage of the price break below $3,400.
Price weakness could set the stage for a breakout
Although Ethereum’s decline may destabilized certain traders, the accumulation of whales could portend optimistic days ahead. Large-scale accumulation below $3,400 contributed to the successful defense of $3,200. This follows the accumulation trend leading to support levels being maintained.
If ETH maintains its stability above the $3,200 support and on-chain activity continues to climb, then the price could rebound above $4,000 before the end of the month. However, the first step is for Ethereum to reclaim $3,800 and record a strong weekly close above the level.
Interestingly, the performance of the Ethereum network has maintained its robust level despite the market correction. The blockchain ecosystem recently reached a new record throughput of 24,192 transactions per second (TPS), setting a new benchmark for activity across the entire network.
Featured image from iStock, chart from Tradingview.com
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