Ethereum plummeted to a two-month low of $2,681 during a broader crypto market sell-off exceeding $170 billion. Altcoins were hit hardest, with ETH experiencing over $240 million in long liquidations. Despite the crash, large investors, or “whales,” engaged in significant “buy the dip” activity on spot markets, with one acquiring an additional 20,000 ETH worth over $56 million.
The broader crypto market experienced a significant sell-off, losing more than $170 billion in total market value. Altcoins, especially Ethereum, were hit the hardest, and ETH fell to a low of $2,681.
At press time, ETH traded at $2,714, down 8.2% on the daily charts. After Ethereum dropped to this low, investors holding long positions saw massive liquidations.
Long liquidations jumped to $242.4 million, adding $175 million from the day earlier. Amid this, a prominent ETH trader, MachiBigBrother, was fully liquidated on a 25x long position, resulting in a $2 million loss.
Despite this liquidation, MachiBigBrother returned to the market and took another long position. Another whale returned after two years of dormancy, sold 699 ETH for $1.87 million, and opened a new long position with 20x leverage.
On the spot side, as ETH prices dropped, Ethereum whales rushed into the market. According to Onchain Lens, a whale purchased an additional 20,000 ETH for $56.03 million.
This brings the whale’s holdings to 110,154 ETH, valued at over $311 million in staking. Exchange Netflow data showed a $146.3 million outflow, indicating aggressive spot accumulation.
Ethereum’s massive liquidations after the market crash further exacerbated downward pressure. As a result, the altcoin’s Relative Strength Index fell deeper into bearish territory.
Thus, although whales bought the dip, these demand-side activities had not yet driven a trend reversal. Prevailing market conditions indicated further losses for ETH could be possible.
