Ethereum, the second-largest cryptocurrency by market capitalization, experienced a precipitous 12.8% plunge, breaching the $3500 mark during Monday’s U.S. trading session. This sharp descent came on the heels of Bitcoin’s struggle to maintain stability above the $100k threshold and a sweeping $1.52 Billion liquidation across the cryptocurrency market. Despite the significant pullback, a surge in hefty accumulation by ‘whales’—the term used to describe individuals or entities owning large quantities of a cryptocurrency—hinted at a potential bullish reversal.
According to data from Coingecko, the worldwide cryptocurrency market capitalization stands at $3.6 Trillion, having suffered an intraday loss of 7%. Meanwhile, the 24-hour trading volume hovers around $483.2 Billion.
Historical data on Ethereum’s price trajectory in the last month of the year suggests optimism for ETH holders. Notably, a prominent crypto whale has added an additional 1,800 ETH to their portfolio—a move approximated at $7 million. This purchase, disclosed by on-chain data from Lookonchain, has swelled the whale’s total holdings to 39,600 ETH, equivalent to an estimated $99 million, since May 24.
The average purchase price for this whale’s ETH stands at $2,487, placing them in a favorable position with an impressive unrealized profit margin of $54 million. This pattern of strategic accumulation, particularly noticeable during the recent price dip, underscores the whale’s continued adherence to the ‘buy-the-dip’ sentiment, reflecting their confidence in Ethereum’s future growth.
Historically, such whale accumulation has often led to the cryptocurrency finding a bottom and rebounding shortly thereafter.
From the November low of $2,350 to a high of $4,098, Ethereum showcased an impressive 73% rally. A careful analysis of the daily chart reveals that this rally decisively broke through the resistance trendline of the 8-month correction, signaling the continuation of the prevailing uptrend.
Currently, the ETH price is trading around $3,682, testing the breached trendline as a support point before making its next upward move. Data from Coinglass indicates that Ethereum’s performance in December has historically been mixed, with both significant gains and losses recorded in previous years.
In 2020 and 2017, Ethereum yielded notable returns of +19.46% and +70.54% respectively. Conversely, the cryptocurrency saw substantial declines in 2021 (-20.61%) and 2019 (-15.09%). However, December tends to lean slightly on the bullish side, recording an average growth return of 7.95%.
While the cryptocurrency market’s volatility can sometimes lead to jarring price swings, these trends and patterns offer important insights for investors, traders, and anyone with a stake in the exciting world of digital currencies.
