Ethereum’s price fell below the $3,000 mark on May 2, 2024, after failing to maintain the 9% rebound it experienced over the weekend, reaching a high of $3,300 on April 28. However, recent activity by large investors offers a glimmer of hope.
Over the weekend, Ethereum’s price showed signs of recovery, with a 9% increase between April 27 and April 30. Unfortunately, the bulls were unable to sustain this demand surge, and the bears quickly regained control. As a result, there has been a 14% decrease in the last 48 hours, causing Ethereum’s price to drop below $2,820 for the first time in 75 days.
This significant price decrease can be attributed to the underwhelming announcement from the US Federal Reserve on May 1. The Fed 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 anticipate multiple rate cuts in 2024. This news further intensified the bearish sentiment in the crypto market, leading to Ethereum’s price falling to a 75-day low of $2,815.87 within 24 hours of the announcement.
Despite the negative market sentiment, there is a glimmer of hope in recent movements observed among Ethereum whale investors. Data from Santiment shows that these investors have increased their holdings during the price dip. As of April 28, the top 1,000 Ethereum wallets held a cumulative balance of 75.11 million ETH. Despite the price decline of 16%, these whales now hold a cumulative balance of 75.17 million ETH, reflecting an increase of 6,000 ETH in the last 3 days. This indicates that they have invested approximately $18 million this week.
The large volume of whale buying pressure during a market downturn can help support the asset price and potentially trigger a rebound. Additionally, since many of these wallets belong to ETH 2.0 stakers, a portion of the coins may be temporarily out of short-term market supply, reducing sell-side pressure on Ethereum in the coming days.
Considering the recent investment by Ethereum whales, the price of ETH is expected to rebound above $3,100 in the short term. GIOM data from IntoTheBlock suggests that if Ethereum can break through the sell-wall at the $3,100 territory, a retest of $3,500 could be possible. However, if the addresses that acquired ETH at an average price of $3,107 decide to sell early, Ethereum may struggle to advance further in the near term.
It is important to note that this content is for informational purposes only and should not be considered financial advice. Readers are encouraged to conduct their own research before making any investment decisions.
