As volatility intensifies in the broader cryptocurrency market, ethereum price It has fallen sharply and is dangerously close to the $2,000 level. Although there is some speculation that the ongoing trend resembles a bear market phase, investors seem unfazed by the sharp drop in ETH prices and there are no signs of accumulation slowing down.
Investor behavior after Ethereum falls below realized price
Following a sharp decline on Tuesday, Ethereum Prices are currently below a key level that is considered the realized price. Investors are moving in the opposite direction, as evidenced by continued interest in major altcoins despite a steady decline in price.
Related article: Ethereum holders rise 3% in January, surpassing 175 million milestone
According to According to market expert and investor CW, even though ETH is trading below its realized price, investors continue to steadily accumulate altcoins, with much of the market in unrealized loss territory. On-chain data shows continuation Accumulation from large holders or whales and faith-based buyers.
What is interesting about the behavior of whales is that these investors are tenaciously accumulating Ethereum even while incurring losses. Large investors with unrealized losses are still buying, a pattern typically associated with rising stress or changes in network-wide sentiment.
Despite the current decline, ETH inflows to accumulation addresses are also increasing. CW highlighted that Ethereum reached this level last April, but quickly recovered before rising again. If the purchasing power of the whales is intact, this means that the group finds current prices attractive. As a result, A significant rebound in ETH price is expected in the near future..
ETH feels growing interest in social media
Ethereum may be suffering from volatility, but the leading altcoin is seeing increased interest from investors and social media participants. This is due to price fluctuations, investment strategies, staking, and its potential as a deflationary asset after upgrades and mergers like EIP-1559.
Related article: How Ethereum staking turns into a multi-billion dollar bet for Bitmine immersion
data According to research from Santiment, a popular on-chain data analytics company, ETH is commonly featured in flash deals and cryptocurrency trading services, highlighting its use across platforms such as Binance, MetaMask, and Trust Wallet.
The increase in social media mentions of ETH is due to large-scale purchasing activities By Bitmine. The company has recently purchased large amounts of ETH, demonstrating firm confidence in the future of altcoins despite continued market volatility and unrealized losses.
C.W. reported The company announced that it has acquired an additional 20,000 ETH (equivalent to approximately $46.04 million) through FalconX. With this purchase, Tom Lee’s Bitmine now boasts over 4.305 million ETH worth $9.99 billion, which is approximately 3.56% of the total ETH supply.
Despite this huge number, Bitmine’s goal is to own 5% of the total ETH supply. Bitmine remains the world’s largest Ethereum treasury company, with $2.87 million in Ethereum funds. ETH holdings are locked in staking. Other coins owned by the company include Bitcoin, of which it holds over 193 BTC.
Featured image from Pexels, chart from Tradingview.com
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