Initial reports had indicated Ethereum whales were accumulating ETH.
However, due to the stock and crypto market turmoil earlier this week in response to the Coronavirus pandemic, the same whales dumped their bags.
With ETH slightly below $200, only time and positive news about the Coronavirus will help break this resistance level.
Santiment, a crypto data analysis firm, had on the 4th of March tweeted that the top 100 Ethereum holders were once again accumulating more ETH in a sign that Ethereum might be worth considering for a long term hold in the crypto market. The tweet can be found below.
The top 100 holders of #Ethereum are once again beginning to accumulate higher percentages of the total token supply, in spite of the ongoing consolidation that has been occurring for the past couple of weeks. Generally, when this kind of accumulation starts to mount, it's a pic.twitter.com/Rr5C8vuE97
In the comments section of the tweet, the team at Santiment went on to explain that accumulation was a good sign and that Ethereum bulls were optimistic the price of the coin would go higher. The team explained:
Generally, when this kind of accumulation starts to mount, it’s a signal that those who have the most stake in $ETH (and other respective tokens) are beginning to have a collective sentiment of the token being undervalued and believe it’s a great mid to long-term hold play. Sometimes these price rises take a bit of time after these accumulation rises, but it is generally a good sign for @ethereum bulls.
The Same Ethereum Whales Responsible for ETH Dropping Below $200
6 days after the initial tweet, the team at Santiment has concluded that the same whales started dumping their bags leading up to, and after, the crypto market drop that was witnessed between the 8th and 9th of this month (Sunday and Monday). On these two dates, the crypto and stock markets experienced massive selling pressure as a consequence of the global spread of the Coronavirus. In their report, the team concluded as follows:
In summation, there has been a number of high-profile transfers of ETH to exchanges in days leading up to and immediately after the latest market drop, as some whales look increasingly comfortable with cashing out on a few months of gains.
What Next for Ethereum (ETH) in the Crypto Markets?
Further checking the ETH/USDT chart, we find that the coin has some support around $190 and an overhead resistance of $206. The price of the coin is currently below the 50 (white) and 100 (yellow) 4-hour Moving average. Therefore, ETH/USDT is currently in bear territory. Perhaps with time and good news with respect to the war against the Coronavirus, shall Ethereum witness a trend reversal.