Ethereum experienced a drop in price below $3,000 on May 2, 2024, following a failed attempt by bulls to build on a 9% rebound over the weekend. On April 28, ETH reached a high of $3,300. However, recent activity by large investors offers a glimmer of hope.
Over the weekend, Ethereum’s price showed signs of recovery, with bulls driving a 9% increase between April 27 and April 30. Unfortunately, the demand surge was not sustained, and bears quickly regained control, leading to a 14% decline in the past 48 hours. This drop caused the price of Ethereum to dip below $2,820 for the first time in 75 days.
The recent 14% decrease in Ethereum’s price can be attributed to the US Federal Reserve’s underwhelming announcement. On May 1, the Federal Reserve decided to keep its monetary rates unchanged while expressing a desire for a 2% inflation rate target. Despite the US inflation rate still being above 4%, many investors foresee multiple rate cuts in 2024. The Federal Reserve’s decision further intensified bearish sentiment in the crypto market, resulting in Ethereum’s price plummeting to a 75-day low of $2,815.87 within 24 hours of the announcement.
However, there is some hope in the form of Ethereum whale investors. Recent movements among these large investors indicate a continued interest in Ethereum. Despite the price decline, Ethereum whales have taken advantage of the dip to increase their holdings. As of May 2, these whales now hold a cumulative balance of 75.17 million ETH, reflecting an increase of 6,000 ETH within the last three days. With the current price of around $2,995 per coin, these whales have effectively invested approximately $18 million this week.
This influx of buying pressure from whales during a market downturn can help support the asset’s price or potentially trigger a rebound. Additionally, considering that a majority of the top 1,000 Ethereum wallets belong to ETH 2.0 stakers, some of these coins may be temporarily out of the short-term market supply. This could reduce sell-side pressure on Ethereum in the coming days.
Given the $18 million investment by Ethereum whales this week, the price of ETH appears poised for a rebound towards $3,200. Data from IntoTheBlock’s GIOM further supports this bullish outlook. However, Ethereum must first overcome the sell-wall at the $3,100 level. If successful, a retest of $3,500 could be expected.
It is important to note that this article is for informational purposes only and should not be considered financial advice. The views expressed are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses incurred.