The recent market crash has resulted in some significant purchases by whales which pushed up the price of cryptocurrencies such as Bitcoin and Ethereum (ETH) towards 2023 highs. On-chain data showed that Ethereum whales with 1,000 to 10,000 ETH added around 400,000 ETH to their holdings during this period. The value of the recent acquisition is estimated at 600 million dollars.
Ethereum lost more than 21% of its value after falling from a local high of $1,742, which it reached on February 16, 2023. The retracement was consistent with the historical behavior of the ETH price, having established a technical indicator that suggested a fall. of the price of 20%.
Ethereum whales bought more ETH during the recent market crash
After hitting the high of the year, analysts identified a technical death cross pattern that supported growing apprehension of a possible pullback after an impressive rally. A death cross describes the situation in which the short-term 50-day moving average crosses below the long-term 200-day moving average of an asset.
The market followed this pattern and plummeted in a drop that sent the price of ETH plummeting to $1,369 in less than a month. According to the chain’s data, bulls found this an opportunity to load stocks as prices rebounded after a major buying exercise.
With technical factors already supporting bulls, the prevailing financial crisis in the mainstream banking sector offers critical support for investors, who appear to be embracing cryptocurrencies as an alternative.
Prior to this time, there have been growing expectations that regulators interest rates would rise. That formed a tailwind for the projected crypto market rally in the coming months.
Ongoing challenges among major banks appear to have catalyzed the expected rally as the market rallied after the Silicon Valley Bank collapse. Investors seem to be turning to cryptocurrencies as an alternative and a safe place for asset preservation.
At the time of writing this article, Ethereum was trading at $1,670only 4.27% less than the highest price it has reached this year.