Ethereum price dives to $3682 as whale accumulation signals rebound
Ethereum's (CRYPTO:ETH) price dropped by 12.8% on Monday, falling below the $3,500 mark amid a broader market downturn.
The decline was triggered by Bitcoin's (CRYPTO:BTC) difficulty in holding above the $100k threshold and a massive $1.52 billion liquidation in the crypto market.
Despite the pullback, whale accumulation surged, indicating a potential for a bullish reversal.
According to Coingecko, the global cryptocurrency market capitalisation sits at $3.6 trillion, with a 7% intraday loss.
The 24-hour trading volume reached $483.2 billion.
On-chain data from Lookonchain reveals that a prominent crypto whale has added 1,800 ETH, worth approximately $7 million, to their portfolio.
This brings their total holdings to 39,600 ETH, valued at around $99 million, since May 24.
The whale's average purchase price for ETH is $2,487, positioning them with an unrealised profit of $54 million.
This accumulation is seen as a buy-the-dip strategy, suggesting the whale remains optimistic about Ethereum's future prospects.
Historically, such whale accumulation has been a precursor to Ethereum finding a bottom and rebounding.
From the November low of $2,350 to $4,098, Ethereum showed a 73% rally, breaking through an eight-month resistance trendline.
This breakout is seen as signaling the continuation of an uptrend.
Ethereum's price currently trades at $3,682, testing the previous resistance trendline as support.
Data from Coinglass highlights that Ethereum's performance in December has been mixed over the years, with notable gains in 2017 (+70.54%) and 2020 (+19.46%), while declines were recorded in 2021 (-20.61%) and 2019 (-15.09%).
At the time of reporting, the Ethereum price was $3,745.82.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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