Amid the massive sell-off in the broader crypto market, the price of Ethereum (ETH) has dropped below $2,000 in what appears to be a massive whale dumping ground. At the time of writing, Ethereum is trading 6.30% lower at a price of $1,955 and a market cap of $233 billion.
The recent development comes as dormant Ethereum whales, which bought the largest supply in 2018, dumped the entire 150,000 ETH on April 18.
However, on-chain data provider Santiment believes that ETH’s recent price drop will not last long. So there is a good chance that ETH price will rebound to $2,000 and beyond.
Why Is The Dormant Ethereum Whale Movement Positive For ETH Price?
Data provider Santiment reports that when dormant assets move, it can indicate major price shifts, usually in a positive direction. It also notes that assets moving from old addresses to new ones are more likely to increase the rates of token moving between addresses on a network.
When there is a spike in the circulation of dormant ETH coins, they usually coincide with price bottoms.
Also, the average invested age in dollars, shown in the red line above, has moved down over the past week. This shows that the average age at which investments in addresses have been made has also fallen.
In the report, Santiment explains, “A younger average invested age in dollars is historically better for a bull setup, and we’ll have to watch closely to see if this trend continues.”
Furthermore, the recent dump of 150K ETH by whales isn’t exactly a bad sign, as each address only yielded one large accumulation. Thus, this sample size is not large enough to assume market manipulation masterminds.
This year, Ethereum has had a solid performance so far as ETH price is already up 70% so far. It will be interesting to see how long ETH rests before resuming its upward journey.
Bhushan is a FinTech enthusiast and has a good flair for understanding financial markets. His interest in economics and finance draws his attention to the new emerging Blockchain Technology and Cryptocurrency markets. He is constantly in a learning process and keeps himself motivated by sharing his acquired knowledge. In his spare time he reads thriller fiction novels and sometimes explores his culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
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