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Key Insights:
- Bitmine bought 52,475 Ethereum (ETH) worth $220 million, while SharpLink added 143,593 ETH valued at $667 million.
- James Wynn went long on ETH, opening a 25x leveraged position with liquidation at $4,152.
- Ethereum’s price action suggests that ETH is preparing for a massive price uptick.
As the crypto market continues to fall, institutions are eyeing Ethereum (ETH), the second-largest cryptocurrency. Over the past 24 hours, it has been recorded that institutions are heavily accumulating ETH, which appears to be buying the dip.
Institutions on Buying Spree, Time to Buy Ethereum?
Recently, a blockchain-based transactions tracker, Lookonchain, shared multiple posts on X, disclosing that institutions and traders are notably betting on ETH.
According to the shared, it was found that Bitmine has purchased 52,475 ETH worth $220 million following the opening of the US market. With this, Bitmine’s total ETH holding soars to $1.575 million, worth $6.6 billion.
This recent acquisition of ETH follows the firm’s purchase of 373,110 ETH, valued at $1.62 billion, last week.
Not just that, another institution, SharpLink, has also been showing its strong interest and confidence in the asset. The Lookonchain shared that the firm has added 143.593 ETH worth $667 million, and with this, their holding now reach 740,760 ETH worth $2.20 billion.
This substantial ETH purchase by institutions highlights their growing interest in the asset as the price continues to fall. Additionally, there is a shared belief that it is either the right time to buy ETH or that the price may fall further.
Current Price Momentum
At press time, the Ethereum price stands at $4,140 and has slipped 5% over the past 24 hours. It appears that this notable buying pressure doesn’t impact the asset price.
Additionally, the traders and investors’ participation also dropped during the same period. CoinMarketCap data reveals that ETH’s trading volume has dropped by 7% compared to the previous day.
Looking at Ethereum’s price, it appears that prominent crypto trader James Wynn’s 25x leveraged long ETH position will be liquidated, as Lookonchain shared the liquidation price of $4,152.8 on X.
Ethereum (ETH) Price Action and Technical Analysis
According to the expert technical analysis, it has been three straight days that ETH has been building red candles. On the daily chart, ETH has reached near its key breakout level of $4,000.
Besides this, after approaching its all-time high, ETH has formed a bullish falling wedge pattern and is currently hovering near the lower boundary of the structure.
Based on recent price action and historical patterns, if ETH holds this level, there is a strong possibility of an impressive recovery.
However, ETH’s Supertrend indicator has now turned red and is trading above the asset price. This signals that Ethereum is in a downtrend, with sellers dominating and exerting strong selling pressure.
Whereas, the Relative Strength Index (RSI) stands at 34.95, which indicates that the asset is near the oversold area and there is a high probability that the asset could face a price recovery.
Major Liquidation Levels
At press time, traders have turned bearish as short positions have skyrocketed. Data from on-chain analytics firm Coinglass shows that ETH’s major liquidation levels are at $4,105 on the downside and $4,240 on the upside.
These levels are key liquidation points and zones of heavy leverage, with traders building $396 million in long positions and $1.03 billion in shorts.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
