Ethereum whales add 7.6 million ETH amid growing calls for market rebound

According to the latest reports, crypto whales have accumulated 7.6 million ETH since April this year. That means whales have increased their ETH holdings by 52%. Analysts believe that this trend may lead to a market rebound or reversal of the current trend. 

Usually, when large holders accumulate the tokens rather than selling them, chances are high that the price of ETH may spike due to the anticipated scarcity of the tokens. However, small investors are not confident about a price rebound and have been investing in spot trades lately. Analysts are capitalizing on a similar development that occurred in 2018, when Ethereum saw a bullish drive after a period of bearish trends. 

The whale accumulation of a significant amount of Ethereum, despite its volatile nature, shows that the future is bright for Ethereum. 

Whale Activity and Its Effect on ETH Price

Whale activities on the ETH market, such as buying or selling large amounts of ETH, can have a significant effect on the market. Whales can strategically alter the market by placing buy orders or sell orders, i.e., by manipulating the market. For instance, if a whale wants to buy ETH for a price lower than the market price, they advertise that they are going to sell their holdings at a lower price. Such a sale of a huge number of ETH at a lower price will again lower the market price. So, small holders will start selling their holdings to leverage the high price, which will actually lower the price. The whale will withdraw the selling order after the price of ETH reduces to a considerably low rate, allowing them to purchase ETH in the market at this lower price. 

Similarly, Whales can drive up the price for ETH if they want to sell the token for a price higher than the market price. They place a big buy order above the current price, making others believe the price will rise. This encourages smaller investors to buy quickly, pushing the price higher. When the price reaches the whale’s target, they sell their ETH for a profit.

Long-term Effects of the Recent Whale Activity

Even as ETH experiences a price dip, whales are continuing to buy the tokens.  In the past few days, whales purchased about 394,682 ETH, worth around $1.37 billion, during price dips between $3,247 and $3,515. Despite the currency sentiment being bearish, whales are hopeful of a price rebound; the price may rise to over $4,500 to $4,800 in the long term.

Recent whale buying suggests confidence in Ethereum’s future, helping stabilize prices in the short term while driving long-term growth if the accumulation trend persists and broader economic conditions improve. Whale accumulation often precedes significant market recoveries because large investors buy during dips and hold through volatility.

Final Thoughts

ETH is a popular cryptocurrency with a significant influence on the market. If the currency whale activity results in the asset rebounding, it will be an opportunity worth exploring for both whales and small holders. Whales are capitalizing on ETH’s flexibility. If other macro-economic factors, such as inflation, are favorable, ETH will emerge as a significant token in the future, driving the overall growth of the DeFi market.