Home Enthusiast Ethereum enthusiasts on the fence about buying the dip should read this

Ethereum enthusiasts on the fence about buying the dip should read this

  • ETH Gets 30% Discount as Market Crashes
  • Whales Holding 32 ETH Hit New ATH

Ethereum [ETH] saw a major discount this week as the latest FTX-related events wreak havoc on the market. ETH has returned to price levels below $1,200 and the last time it was in this range was in July.

Read Ethereum [ETH] price prediction 2023-2024

ETH, so far, has fallen 30% this week thanks to the ongoing stock market crash. Many traders wondered if now was a good time to buy back or wait for the selling pressure to ease. But before traders make up their mind, here are some recent observations that might help provide some clarity.

ETH Whales buys at discounted prices

Glassnode researchers have observed a continuous increase in the number of addresses holding 32 ETH or more. Why is this important? Well, 32 ETH is the minimum required to run a validating node. Operating an Ethereum validating node can be quite lucrative. So it only made sense that many aspiring validators would take advantage of this by accumulating at lower prices.

Glassnode also reported a continued increase in the total value of ETH locked in ETH 2.0 deposit contracts. Additionally, the same report revealed that ETH 2.0 deposit contracts reached a new all-time high at 14.8 million ETH.

Source: Glassnode

The total value staked in ETH 2.0 has also increased despite the bearish market conditions. This was a sign that ETH holders were not just buying the dip, but betting to take advantage of growth opportunities in the next bull run.

A review of ETH exchange flows also confirmed that there was healthy accumulation despite the decline. ETH exchange outflows have exceeded exchange inflows at the time of writing.

ETH Exchange Flow

Source: Glassnode

The exchange exit metric recorded 851,225 ETH while the exchange entry metric recorded 664,811 ETH at press time. Higher forex outflows than inflows can be seen as a bullish sign. This accumulation can also be seen as a slight bullish rally above $1,200, after briefly falling to 1,136.

ETH Price Action

Source: Trading View

More benefits in the future?

The downside for ETH came below the oversold zone, but there was still a chance that it could fall into the oversold territory if the selling continued. This would happen if the current FUD maintains its level, but so far the selling pressure seemed to be easing.

The observed return of bullish demand was also one of the key signs confirming the accumulation. Traders should expect a more bullish rally in the near term if the selling pressure eases, giving way to more upside.