Ethereum whale investors are a major influencer of the ETH market. They use their holdings for their preferred trend in the ETH marketplace. Their impact on the ETH market is growing, according to CryptoQuant’s data.
The crypto space defines whales as entities or individuals who have a higher level of investment in a specific asset. Whales can manipulate the price of crypto by holding large amounts of it.
The perception that whales have negative effects on the markets has been held over time. Because they have the advantage in an unregulated market, and can manipulate prices accordingly, this is why it has been a common perception. They do not want to cause instability in the market, but they are trying to protect their gains and interests.
On-chain data provider ETH Whales were noted to have price manipulated the second most valuable crypto assets by their exchange activities.
An analysis firm published a quick take on the Ethereum price patterns. An analyst acknowledged suspicious moves with the whales’ activity on exchanges between 2020 and 2021.
Ethereum Whales Transferred Tokens to Exchanges To Increase Price
According to this post, most of the Ethereum whales’ ETH holdings were deposited on exchanges. They created a situation that spiked the token’s price and sold the deposits using the hiked prices.
Data indicates that ETH’s price surged quickly amid an increase in Ether’s balances on exchanges. The analyst pointed out that the sequence is not consistent with the Ethereum market norm. The general trend for Ethereum is to see a drop in prices as exchange flows increase.
Thus, the article mentioned that Ethereum whales raised Ether’s price by depositing tokens on exchanges. The deposited Ether coins were later sold at a greater price by the whales.
The price of ETH rose at the same rate as exchange inflows between 2020 and 2021. It added that when there’s a rise in exchange inflow, it signifies a short-term high and long-term low.
The Crypto Market and Price Manipulations
There have been many price manipulations in crypto markets. This type of activity and accusations are nothing new within the crypto industry. Vitalik Buterin (co-founder of Ethereum) shared his views on this trend in a recent interview to the New York Times.
Buterin stated that Terra’s team tried using market manipulation for hiking LUNA’s value. It failed, as Terra’s ecosystem collapsed without any notifications.
CryptoQuant data showed that Ethereum’s whales began a large deposit of Ethereum holdings onto exchanges shortly after the Merge. This action caused selling pressure and caused a decline in Ether’s price. The token reached its July level.
The price rose once more. ETH traded at approximately $1,329 at press time. That is a significant loss in the chart.
Featured Image from Pixabay. Chart from TradingView.com