Since last week, the crypto market has been plagued by a series of corrections. One of these retracements saw the sector’s worth dip by more than 20% during the last seven days. Unfortunately, the industry is yet to recover and we observed the continuation of the bearish actions.
At the start of the most recent depreciation, the global cryptocurrency market cap was estimated at $1.61 trillion. Some hours to the time of writing, the industry is valued at $1.54 trillion – a more than 6% drop.
One of the many affected cryptocurrencies was RUNE, FTM and MATIC, which have lost 15% each over the past 24 hours. Trailing behind these assets is Ether, which was down by 14% after opening the intraday trading sessions at $2,543 and is exchanging below $2,200.
Clearly, the coin lost the $2,500 support (a critical level) as well as the $2,300 as the bulls failed to defend these marks. The current dip is not attracting as much reaction from traders as most seem to be in HODLing positions, with little to no one stocking up the altcoin.
We note the dwindling purchase of ETH as the funding rate for the asset is gradually reducing with a few traders selling off their bags some hours ago. As per some reports from Coinglass, we not that the largest altcoin was experiencing one of its lowest performing days.
Ether is exchanging at $2,420 as of the time of writing – an indication that the market is slowly recovering. Hitting a low of $2,160, could this be the lowest the second largest coin fall? To find an answer to this question, let’s examine what changed the market trajectory.
Whales Got Involved
The $2,000 support was of the critical levels many believe will be tested before rebound. The test never happened as the intraday low suggests, which left many wondering if the bearish dominance had finally come to an end.
As per reports on Etherscan.io, the number of unique wallets is at an all-time high. This means that big players are shopping and buying as much as they can following the discount as a result of the correction.
Reacting to this news is a Twitter user reiterated that new all-time high of 26.22 Million $ETH held by top non-exchange whale addresses. BillyWarwick concluded is tweet by asking “what’s next.”
BREAKING: #Ethereum Whales are Buying the Dip. New All Time High of 26.22 Million $ETH Held by Top Non-Exchange Whale Addresses What will happen for ETH next?
BillyWarwick (@BillyWarwickLDN) January 24 2022
What’s Next?
It is important to note that we are at a point of uncertainty. Will the current buyback continue or will it stop? We don’t know, but one thing we do know is that an extension of the current bullish trend could send traders into another buying frenzy.
Nonetheless, we observe that recent price movements have negatively impacted the Moving Averages as we see an impending death cross on the daily chart. Based on the pattern the 200-day and 50-day MA are printing, we may conclude that a bearish interception could send ether below $2,000.
Additionally, some traders have placed buy orders at $2k and are waiting for it to be filled. For these orders to get executed, it will depend on trading actions over the next three days.
