Someone is buying an enormous amount of Ethereum on the Binance exchange. This person, whose identity is not yet known, started saving when the ETH price was around $ 1,200. The purchase came as the altcoin market recovered.
An investor deposited in Ethereum, so why?
Enormous amount of buying volume is observed in the ETH/USD pair on Binance. This shows that a large investor or anonymous whale is evaluating $1,228. The whale bought as much ETH as it could while the price was in this region. These transactions come at a time when the altcoin market is slightly recovering.
Key reasons behind altcoin whales appetite
First of all, normal purchasing power does not at least partially affect Ethereum’s price performance. However, as seen in the chart, Ethereum has been moving sideways recently. However, it does show that buying large volumes is offset by large volume selling or short selling.
Ethereum price has bottomed out at $1,049.76 in the past 7 days. June 18 was a period of hard selling in the cryptocurrency market. Ethereum is now in a mild recovery phase. at the time of writing. It is trading above $1,200.
For Ethereum, the imbalance between buy and sell orders is currently at serious levels. Therefore, almost any purchasing power released does not trigger a drastic jump in Ethereum price unless large institutions choose to return to the market.
However, despite the lack of market volatility, such a large cash flow means there are still some investors who will buy the leading altcoin at a significant discount.
What do these purchases mean?
Unfortunately, the previously mentioned imbalance between buy and sell orders is causing problems for Ethereum investors in the future due to the large purchasing power and lack of upside volatility in the market. If the bulls lose the fight against the bears and the second largest cryptocurrency in the market pulls back, the anonymous investor will be forced to sell his large investments, which can be difficult given the current lack of liquidity.
As you follow on Kriptokoin.com, the cryptocurrency market as a whole is still quite volatile. At the same time, seven of the top ten cryptocurrencies by market cap were in decline during this time.
On the other hand, there is still good news for the ETH community. The number of non-zero addresses on the Ethereum network has reached 82,919,388 ATH. This means that the user base of the network is growing, even if the addresses are minimal.
Talking about minimum amounts, even the number of addresses holding 0.01+ ETH touched 23,264,304 ATH. In addition, merge also paints a positive scenario. ETH 2.0 deposit contracts continued to surpass their previous peaks.
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