Ether Whale Buys $12.8M Worth of ETH Amid Market Recovery

Ether Whale Makes Bold Move: 5,000 ETH Purchased Amid Market Uncertainty

Ether Whale Buys $12.8M – In a significant development within the cryptocurrency market, large Ether-holding entities, commonly referred to as “whales,” are continuing to accumulate Ether (ETH) as the cryptocurrency struggles to break through a critical psychological resistance level. According to recent data, a whale has acquired 5,000 ETH tokens, valued at over $12.8 million at the current market price.

This purchase marks a notable event, as the same whale address was last active during Ether’s dip to the $2,100 mark, shortly before the cryptocurrency staged a recovery to $3,100. The purchase was highlighted in an August 12 post on X by Scopescan, a blockchain analytics platform. Investors closely monitor whale activity, as such moves often indicate underlying sentiment about the asset’s future performance. The timing of the whale’s last purchase coincided with a local price bottom, leading to a strong recovery shortly after.

Ether’s Battle with the $2,700 Resistance

Despite a significant recovery in the broader cryptocurrency market following the $510 billion sell-off on August 5 and 6, Ether has yet to decisively surpass the $2,700 resistance level. Over the past week, Ether’s price has climbed more than 18%, trading at $2,655 as of 11:08 am UTC, according to data from CoinMarketCap.

Aurelie Barthere, Principal Research Analyst at Nansen, emphasized the importance of this resistance level in a recent interview with Cointelegraph. “There has already been a death cross of ETH (50-day below 200-day),” Barthere noted. “ETH needs to hold above $2,700, or the resistance tested yesterday and in January 2024.” The “death cross” is a technical chart pattern that often signals potential weakness in the asset’s short-term price performance compared to its long-term average.

Spot Ether ETFs Face Net Outflows Despite Historic Launch

Institutional interest in Ether remains muted despite the historic launch of the first spot Ether exchange-traded funds (ETFs) in the United States, which began trading on July 23. According to data from Farside Investors, the nine U.S. spot Ether ETFs recorded $15.8 million in cumulative negative outflows on August 9. Since their inception, these ETFs have seen cumulative net outflows of $406 million, contributing to Ether’s underwhelming price action.

ETF inflows are often a significant factor in a cryptocurrency’s price appreciation. For example, Bitcoin (BTC) ETFs accounted for approximately 75% of new investment in Bitcoin by February 15, 2024, helping to propel the cryptocurrency past the $50,000 mark.

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