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Crypto Whales Inject $35 Million in Ethereum, Driving the Price Past $3,400

Crypto whales' strategic investments in Ethereum

Crypto heavyweights are stocking up on top cryptocurrencies like Ethereum (ETH), awaiting the continuation of the bull market. 

Key takeaways:

  1. Crypto whales have invested $35.11 million in stablecoins to purchase Ethereum (ETH), driving its price above $3,400.
  2. The transactions, likely conducted by a single entity, have established a strong support level for ETH between $3,328 and $3,428.
  3. While there is potential resistance above this support zone, Hitesh Malviya, founder of DYOR, believes that Ethereum has found a local bottom and is poised for an upward trend.

According to Spot On Chain, an on-chain analytical platform, crypto whales have recently channeled $35.11 million in stablecoins into Ethereum (ETH), propelling its price beyond the $3,400 mark. A closer examination of the transactions suggests a strategic play by a single entity controlling multiple crypto wallets.

Eight wallets, believed to be under the same entity's control, deployed $20.86 million in USDT to acquire 6,144 ETH at an average price of $3,395. Spot On Chain noted that five wallets labeled "Address Group 1" were funded with USDT by wallet 0x065, while those from "Address Group 2" received USDT from wallet 0x8ce. These two funding wallets had previously engaged in several USDT and ETH transfers with each other, indicating they likely belong to the same entity.

In another significant trade, crypto wallet 0x5e9 purchased 4,178 ETH using $14.245 million in DAI, averaging $3,410 per ETH. This particular whale had previously generated a substantial profit of $7.48 million from trading activities involving Ethereum and Wrapped Bitcoin (WBTC).

Ethereum price dynamics and potential resistance

The In/Out of the Money Around Price (IOMAP) chart reveals that Ethereum is now tightly bracketed by the recent crypto whale transactions, resulting in the formation of a robust support level between $3,328 and $3,428. Within this range, approximately 3.13 million addresses have acquired 5.78 million ETH at an average price of $3,371.

If Ethereum's price were to dip below this support level, it could encounter significant resistance, potentially limiting its upward momentum. Conversely, the resistance above this zone appears to be less formidable.

The next notable barrier lies between $3,433 and $3,534, where 2.1 million addresses had previously purchased 1.6 million ETH at an average price of $3,499. There is a possibility that some investors might sell at these levels to break even, which could lead to a price correction for Ethereum. Consequently, these transactions play a crucial role in shaping Ethereum's near-term price trajectory.

Despite the potential obstacles, Hitesh Malviya, founder of the on-chain analytical platform DYOR, maintains that Ethereum has established a local bottom. Malviya stated: 

"After 17 days of re-accumulation period on ETH, the market price is finally moving above the fair price, indicating that we've found the local bottom and are ready to go up." 

However, it is important to note that DYOR's fair price model, which aims to estimate a token's intrinsic value based on supply and demand dynamics, is an experimental model with a margin of error.