Despite the prevailing bearish market sentiment, traders and investors are seizing the opportunity to accumulate a substantial amount of Ethereum (ETH) following a significant price drop. Today, on August 3, 2024, the on-chain analytic firm lookonchain reported that a savvy trader with a flawless 100% win rate recently purchased a noteworthy 2,424 ETH totaling $7.22 million.
Smart trader buys $68 million of ETH
In addition, this same trader acquired 4,000 ETH valued at $12.58 million just 24 hours prior. According to data from lookonchain, this strategic trader has accumulated a total of 19,436 ETH amounting to $68.25 million since May 29, 2024, coinciding with the approval of spot Ethereum Exchange Traded Funds (ETFs). The average acquisition price for this substantial ETH haul stands at approximately $3,587.
Furthermore, the ongoing accumulation by this astute trader suggests a prime buying opportunity amidst the recent drastic drop in ETH’s price. This scenario mirrors the aftermath of the approval of spot Bitcoin ETFs in the United States, where the market initially witnessed a sharp decline, followed by a subsequent bullish trend leading to significant gains across various cryptocurrencies.
Ethereum price performance analysis
Currently, ETH is hovering around the $2,930 mark, registering a decline of over 3.4% in the past 24 hours. Simultaneously, trading volumes have dropped by more than 20%, indicating reduced participation from traders and investors amidst the prevailing bearish sentiment.
Ethereum technical analysis and upcoming levels
Technical experts suggest that ETH is at a critical support level of $2,900, potentially forming a bullish double-bottom pattern with a positive divergence in the Relative Strength Index (RSI). Historical data shows that whenever ETH reaches this level, it tends to experience a significant upward surge. Since April 2024, ETH has revisited this level five times, each time resulting in a substantial rally. Therefore, traders and investors may anticipate a similar bullish momentum with a potential price surge towards the $3,150 level.
