Ethereum whales buy billions during price dip – Do they know something we don’t?

The Ethereum (ETH) price is experiencing a turbulent week. Yet major investors are seizing this moment to buy en masse. As the price fell to $3,200, crypto whales moved billions worth of ETH. This indicates continued confidence in the currency and possible expectations of a rally.

Ethereum whales buy during dip

Major crypto investors, the so-called whales, have stocked up on Ethereum en masse in recent days. On-chain data shows that several whales and institutions together purchased almost $2 billion worth of ETH during the recent price drop.

Several purchases catch the eye. Analyst CryptoNobler points out a very special transaction. According to him, an Ethereum whale from the Satoshi era bought no less than 385,000 ETH, worth more than 1.3 billion dollars. The gigantic purchase almost immediately led to a price jump of 2 percent. The wallet in question was inactive for years. CryptoNobler therefore wonders whether this buyer “knows something that we don’t know”.

Data from Etherscan also shows that one whale bought no less than $206 million worth of Aave-wrapped Ether (aETH). The total amount was 58,811 aETH. These tokens are a variant of Ethereum and are used within the decentralized finance (DeFi) platform Aave.

Yet another whale bought 10,000 Ethereum each in two separate transactions, according to data from analysis platform Arkham Intelligence. The first transaction took place when the Ethereum price reached a local bottom around $3,200. The major investor thus made smart use of the sell-off.

The purchases by such large investors are seen as a positive signal. Whales do not usually act impulsively, but usually base their decisions on long-term expectations. Sometimes they also have information that is not yet widely known, exactly what CryptoNobler was referring to. It could be an indication that the dip is behind us and that Ethereum is preparing for a new upward movement.

Bitmine continues to buy

Bitmine, the company with the largest public Ethereum stock in the world, is also continuing to buy heavily. While many other crypto reserve companies wait and see, Bitmine announced on Monday that it has purchased $400 million worth of ETH. In total, the company added 110,000 Ethereum to its balance sheet. The purchase increased the total supply to over 3.5 million ETH, almost 3 percent of the entire circulating supply.

Analyst sees buying opportunity for ETH in chart

Positive signals are also emerging from a technical point of view. Analyst Kamran Asghar points out that a so-called falling wedge pattern is visible on the chart. This pattern is characterized by falling tops and bottoms within an increasingly narrowing price channel. It often signals easing selling pressure and usually precedes an upside breakout.