• Ethereum [ETH] has been experiencing a significant increase in network activity and accumulation, with whales taking advantage of the dip to $1,650.
• Despite whale activity reaching its highest in 16 weeks, ETH is still vulnerable to capitulation and could drop to 2019 lows.
• Various factors suggest that ETH will remain compressed around the same $1,600 price point in the short term.
Ethereum Whale Accumulation
Recently, Ethereum [ETH] has seen a surge in network activity and accumulation as whales have taken advantage of the coin’s dip to $1,650. According to Santiment, ETH’s whale activity reached its highest in 16 weeks due to this venture. Addresses holding between 10 and 10,000 ETH rose to 355,000 while ETH $100,000 transactions also spiked.
Price Volatility
At press time, ETH consolidated making a 1.70% drop in the last 24 hours. And according to on-chain analysis Ethereum’s price volatility fell to 0.009. This suggests that ETH will likely continue trading around the same $1,600 price point in the short term.
Vulnerable To Capitulation?
Despite increased accumulation from whales leading many to believe that it can shield Ethereum from another potential price plunge – Benjamin Cowen CEO & Co-founder of Into The Cryptoverse believes that ETH may still be vulnerable to capitulation and could fall back down to 2019 lows ($1200).
Risk Factors
Factors such as an increase in new addresses and transfers indicate that there is still risk present if Ethereum were ever subject to capitulation again due any unforeseen events or market changes. Therefore investors should do their own research before investing and make sure they are aware of all potential risks associated with investing into any cryptocurrency market or asset class before committing any capital by consulting with their financial advisor or seeking professional advice if necessary .
Conclusion
Whilst whale accumulation may appear positive for Ethereum’s short term outlook , investors should understand all of the risks involved before diving into this highly volatile asset class . Ultimately it is up for each individual investor on how they choose manage their portfolio , however caution should always be exercised when investing into cryptocurrencies .