Ethereum whales are buying the dip as geopolitical tensions lead to market volatility. While ETH prices fell more than 13% in the past few days, whales aggressively bought the asset, portraying institutional confidence.
Over $100 Million of ETH Purchased by Whales
Whale Ethereum wallet holders profited when the prices dipped to close to $2,200. A whale purchased close to 9,400 ETH worth a total of $39 million after the US military strikes were conducted against Iran. The wallet itself holds close to $330 million in ETH.
Whale activity also restarted on June 21. Over 10,000 ETH addresses collectively sent more than 116,000 ETH worth more than $265 million. Such kind of powerful movements indicate whales are waiting for a bounce in the near future.
One of the wallets took out 50,256 ETH from Binance valued at $113 million. The wallet also got a new wallet, typically indicative of long-term holding or staking plans. Such withdrawals reduce supply kept on exchanges as well, decreasing selling pressure.
Leveraged Bets on Price Recovery
Aside from spot stacking, whales are also entering the market today with levered positions. The largest position was a $101 million long position purchased at $2,247 per ETH using 25x leverage. The position already has almost $900,000 in unrealized profit.
But leverage level will close the position at a price lower than $2,196, which ETH just managed to touch before it stabilized. The over-leveraging means that it wants to be risk-on in the hope of reversing the price.
Leveraged positions add more force to the price action being considered, amplifying the profit and the loss at the overall market level.
Technical Support and Market Outlook
Technical analysts are of the view that ETH can recover significantly if it hovers around current levels of support. Ethereum has recently touched a long-term rising trend line, which has triggered previous rallies. ETH has appreciated by 55% from April to May after bouncing off similar technical support.
If history is to be repeated, a bounce at $2,735 resistance level can’t be ruled out, corresponding to close to 25% appreciation from here. Such a speculator-talked-about rally is a rather plausible reason for picking up whale activity.
Nevertheless, investors have to be watchful for indications of reversal in the market or further decline. Unless ETH continues to trade above the crucial support levels of approximately $2,150, bulls continue to be on top.
Middle East Conflict Sparking Volatility
The recent ETH decline was followed by U.S. strikes against Iran, raising geopolitical tensions and sending risk-off sentiment on world markets. Bitcoin also broke below the $100,000 mark, supporting bearish strength on the market.
While the bearish moments are experienced, Ethereum’s market share rises because altcoin trading is dropping. With the falling overall altcoin volume, Ethereum’s transactions and addresses remain equal, which is an indicator of network health through the volatility of markets.
This shows that ETH is institutional investors’ best option even during uncertainty.
Ethereum whales are naturally front-running the dip, depositing over $100 million into the markets as geopolitical tensions rise. They are also demonstrating confidence in leveraged longs and withheld withdrawals from exchanges. With technicals signaling a potential bounce, ETH may be ready to turn around, if macro conditions allow.
