- Despite the price pressure, ETH hit its highest whale activity in 16 weeks.
- If history repeats itself, ETH could fall to the 2019 low.
Recently, Ethereum [ETH] has witnessed a significant increase in network activity and accumulation. And the suspects in this regard are whales who have detected the coin drop to $1,650 as an opportunity to get their hands on ETH at a lower price.
Read Ethereums [ETH] Price Prediction 2023-2024
Cult like whales for ETH
According to Santiment, ETHs whale activity reached its highest point in 16 weeks thanks to the increase in this business. Also, addresses with between 10 and 10,000 ETH rose to 355,000, while ETH $100,000 transactions also peaked.
🐳 #EthereumThe company’s network has increased activity at major addresses during this drop below $1,650 and highly volatile pricing conditions. The number of wallets with between 10 and 10,000 $ETH has risen again to 355,000, and transactions over $100,000 have soared. https://t.co/X137U93ZYu pic.twitter.com/J9lyMoeBmf
— Santiment (@santimentfeed) August 24, 2023
When something of this nature happens, it means that these big addresses are convinced that ETH’s price action would be profitable in the long run. On two separate occasions, AMBCrypto did reported how whales are increasingly interacting with Ethereum.
However, the presence of these big investors is not felt with the ETH value. At the time of writing, ETH was consolidating, dropping 1.70% in the past 24 hours. And according to on-chain, Ethereum’s price volatility fell to 0.009.
Therefore, it is likely that ETH will continue to compress and trade around the same USD 1,600 in the near term.
Source: Sentiment
However, this increasing trend has led to discussions about whether it can protect the cryptocurrency from a different potential price drop. Despite the increased accumulation, several factors indicate that Ethereum may still be vulnerable to capitulation.
Will ETH Fall Back To $1200?
One person who shared this sentiment was Benjamin Cowen, the CEO and co-founder of Into The Cryptoverse. According to Cowen, ETH’s market structure was similar to that of the summer of 2019, when the price fell by about 30%.
People tell me it’s different this time.
I doubt it pic.twitter.com/lB3xrLD6AM
— Benjamin Cowen (@intocryptoverse) August 24, 2023
Cowen also continued to compare The Year-To-Date (YTD) performance of 2023 versus 2019. While doubling history would repeat itself, Cowen noted that:
“ETH closing below the annual open (as in 2019) would bring it below $1195.”
Interestingly, most of the comments from the analyst’s post on X (formerly Twitter) seemed to agree with his prediction. For some, ETH would definitely drop to $1,200.
However, there were a few who argued that 2019 was different from 2023 because the adoption of Decentralized Finance (DeFi) was rarely seen four years ago. And now that Ethereum has the support of the DeFi ecosystem, history may not repeat itself.
Is your wallet green? Check the ETH Profit Calculator
At the time of writing, ETHs weighted sentiment fell to 1,135. The weighted sentiment takes into account the perception and commentary that market participants have towards an asset.
Source: Sentiment
Therefore, the decline suggests that the broader market does not see ETH as a cryptocurrency that could be profitable anytime soon.