With volatility intensifying in the broader cryptocurrency market, the price of Ethereum fell sharply, getting dangerously close to the $2,000 level. Although there is speculation that the current trend is akin to a bear market phase, investors appear unfazed by the sharp pullback in ETH price, with accumulation showing no signs of slowing down.
Investor behavior after Ethereum falls below realized price
After the sharp decline on Tuesday, the Ethereum the price has now fallen below a key level considered the realized price. Despite consistent bearish movements, investors are moving in the opposite direction, as evidenced by their continued interest in the leading altcoin.
Related Reading: Ethereum Holders Jump 3% in January, Cross 175 Million Milestone
According to According to market expert and investor CW, investors continue to steadily pile into the altcoin even though ETH is trading below its realized price, putting much of the market in unrealized loss territory. On-chain data shows what’s next accumulation of large holders or whales and buyers of conviction.
What’s interesting about whale action is that these investors are constantly accumulating Ethereum despite a loss. Large investors sitting on unrealized losses continue to buy, which is a trend generally linked to increased stress and a change in sentiment within the network.
Even with the current pullback, ETH flows to accumulation addresses have also increased. CW pointed out that Ethereum had already reached this level in April last year, but quickly recovered before moving back up. When the whales’ purchasing power remains intact, it implies that the group has found the current price attractive. Therefore, a significant rebound in the price of ETH is expected in the near future.
ETH sees increased interest on social media
Ethereum may be struggling with volatility, but the leading altcoin is seeing increased interest from investors and social media participants. This is due to price movements, investment strategies, staking, and its potential as a deflationary asset following upgrades such as EIP-1559 and the merger.
Related reading: Here’s how Ethereum staking is turning into a multi-billion dollar gamble for Bitmine immersion
Data from Santiment, a popular on-chain data analytics company, shows that ETH is commonly discussed in flash deals and cryptocurrency trading services, emphasizing its use on platforms such as Binance, MetaMask, and Trust Wallet.
The increase in mentions of ETH on social media is attributed to massive purchasing activity by BitMine. The company recently purchased a large amount of ETH, a sign of high confidence in the altcoin’s future despite current market volatility and unrealized losses.
C.W. reported that the company acquired an additional 20,000 ETH, valued at approximately $46.04 million, through FalconX. With this purchase, Tom Lee’s Bitmine now has over 4.305 million ETH, worth a staggering $9.99 billion, representing approximately 3.56% of the total ETH supply.
Despite this massive number, Bitmine’s goal is to own 5% of the entire ETH supply. Bitmine remains the largest Ethereum treasury company in the world, with 2.87 million of its assets. ETH holdings are stuck in staking. Other coins held by the company include Bitcoin, of which it holds over 193 BTC.
Featured image from Pexels, chart from Tradingview.com
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