The recent market dip has resulted in some significant whale purchases that pushed crypto prices back toward the local highs of 2023. On-chain data showed that Ethereum whales with 1,000 to 10,000 ETH added around 400,000 ETH to their holdings during this period. The value of the recent acquisition is estimated at $600 million.
Ethereum lost over 21% of its value after dropping from a local high of $1,742, which it achieved on February 16, 2023. The pullback was consistent with ETH’s historical price behavior, having established a technical indicator that suggested a 20% price drop.
After reaching the year’s peak, analysts identified a death cross technical pattern which supported the growing apprehension of a possible retracement after an impressive rally. A death cross describes the situation when the short-term 50-day moving average crosses below the long-term 200-day moving average of an asset.
The market respected this pattern and nose-dived into a dip which saw the ETH price fall to $1,369 in less than one month. According to on-chain data, the bulls found this an opportunity to load the bags, as prices have bounced after a significant buying exercise.
With technical factors already supporting the bulls, the prevailing financial crisis in the mainstream banking sector offers fundamental support to investors, who appear to be embracing cryptocurrencies as an alternative.
Before this time, there have been growing expectations that regulators would hike interest rates. That formed a tailwind for the projected crypto rally in the coming months.
The current challenges among mainstream banks seem to have catalyzed the expected rally as the market rebounded in the aftermath of the Silicon Valley Bank collapse. Investors appear to be returning to crypto as an alternative and a safe place for asset preservation.
As of the time of writing, Ethereum traded at $1.670, only 4.27% off the highest price it has achieved this year.
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