Amid the massive sell-off in the broader crypto market, the Ethereum (ETH) price has tanked under $2,000 in what seems to be a massive whale dump. As of press time, Ethereum is trading 6.30% down at a price of $1,955 and a market cap of $233 billion.
The recent development happens as dormant Ethereum whales, who largest purchased a massive supply in 2018, dumped the entire 150,000 ETH on April 18.
However, on-chain data provider Santiment believes that the recent ETH price drop won’t last for long. Thus, there’s a high chance that the ETH price may recover once again back to $2,000 and more.
Why is Dormant Ethereum Whale Movement Positive for ETH Price?
Data provider Santiment reports that whenever dormant assets move, they can be indicating major price shifts, usually in a positive direction. It also notes that assets moving from old addresses to new ones will have a greater likelihood of raising the rates of the token moving between addresses on a network.
Whenever there’s a spike in the circulation of dormant ETH coins, they have typically coincided with price bottoms.
Also, the mean dollar invested age shown in the red line above has been moving downwards over the last week. This shows that the average age at which investments have been sitting in addresses has also decreased.
In the report, Santiment explains: “Younger mean dollar invested age is historically better for a bull setup, and we will need to watch closely to see if this trend continues”.
Furthermore, the recent dump of 150K ETH recently by whales isn’t quite really a terrible sign as each address has made just one large accumulation. Thus, this sample size isn’t big enough to presume any market manipulation masterminds.
This year so far, Ethereum has delivered a solid performance as the ETH price is already up by 70% year-to-date. It will be interesting to see how long ETH takes a rest before resuming its upward journey once again.
The post Ethereum (ETH) Price Drops Under $2,000 As Dormant Whales Dump, Here’s Why It Can Recover Fast appeared first on CoinGape.
