After a tumultuous week for Ethereum (ETH), it seems that the tides are finally turning in favor of the world’s second-largest cryptocurrency. After experiencing one of its largest weekly drawdowns, ETH is now showing signs of a comeback as whales begin to make their move and retail selling pressure decreases.
The recent drop in ETH’s price has been a cause for concern for many investors and traders. However, seasoned analysts and experts in the field have remained optimistic, citing the cyclical nature of the cryptocurrency market. And it seems that their faith in ETH’s resilience is paying off.
In the past week, ETH saw a significant drop in its value, with prices falling to as low as $1,700. This was a sharp decline from its previous high of $4,300 in May. This sudden drop caused panic among retail investors, leading to a surge in selling pressure. But as the saying goes, “When the going gets tough, the tough get going.”
And that is precisely what we are seeing with ETH. Despite the initial panic, whales – individuals or organizations holding large amounts of ETH – have remained steadfast. In fact, they have been taking advantage of the dip in prices to buy more ETH, signaling their confidence in the cryptocurrency’s future.
According to data from Santiment, a leading on-chain analytics platform, the number of addresses holding between 100 and 10,000 ETH has increased by 1.5% in the past week. This may seem like a small percentage, but it translates to over 1.65 million ETH being bought by whales during this period. This is a clear indication that the big players in the market see potential in ETH and are willing to invest in it despite the recent dip in prices.
At the same time, retail investors seem to be taking a step back and reassessing their positions. The fear and uncertainty surrounding the market have caused many to sell off their ETH holdings, leading to a decrease in retail selling pressure. This is a positive sign as it indicates that retail investors are not blindly following the market trends but are instead making informed decisions.
Moreover, the decrease in retail selling pressure has also allowed ETH to stabilize and start its recovery. In the past 24 hours, ETH has seen a 10% increase in its value, reaching a high of $2,300. This is a significant jump from its low of $1,700 just a week ago. And with the whales’ support, ETH is expected to continue its upward trend.
But what exactly is driving the return of whales to the ETH market? One possible explanation is the upcoming London hard fork, scheduled for August 4th. This upgrade will introduce the highly anticipated EIP-1559, which aims to improve the efficiency and transparency of ETH transactions. This has generated a lot of buzz and excitement among investors, leading to renewed interest in ETH.
Additionally, with the recent crackdown on cryptocurrency mining in China, many miners have been forced to shut down their operations and relocate. This has resulted in a decrease in the supply of ETH, which could potentially drive up its value in the long run.
In conclusion, while the past week may have been a rollercoaster ride for ETH, it seems that the cryptocurrency is now back on track. The return of whales to the market and the decrease in retail selling pressure are positive signs that ETH is set for a comeback. With the upcoming London hard fork and the changing landscape of cryptocurrency mining, ETH’s future is looking bright. So, for those who may have been worried about the recent dip in prices, it’s time to hold on tight and ride the wave of ETH’s recovery.
