Ethereum whales continue their influence on the altcoin price. This is because they use their assets to create the desired trend in the ETH market. But its effects are more eye catching than the data from CryptoQuant.
“Whales are price manipulation for Ethereum assets”
In the crypto space, whales are individuals or organizations that hold a higher investment in a certain asset. Having valuable cryptocurrency makes it easy for whales to manipulate and influence the price of crypto. At the time, the perception has always been that whales have negative effects on the market. This is because they always get the upper hand in the unregulated market to apply a pattern of manipulation on prices. The purpose is not to bring instability to the market, but to ensure their interests and benefits.
On-chain information provider CryptoQuant noted that ETH whales are making price manipulations for the chairman altcoin Ethereum assets through their exchange activities. The analytics firm has released a Quick Look at the Ethereum price model. One analyst acknowledged suspicious moves regarding whales’ activity on exchanges in mid-2020 and 2021.
Whales move tokens to exchanges to boost altcoin price
According to the report, Ethereum whales have shifted many of their ETH holdings to exchanges. They created a situation that increased the price of the token and sold the deposits using the increasing prices. Data shows that the price of ETH is rising rapidly amid the increase in ETH’s balances on exchanges. However, the analyst noted that this series contradicts the average market norm for Ethereum. The general trend is that the prices of Ethereum and other assets fall when stock market entries increase.
Therefore, the report states that Ethereum whales increased the price of ETH after depositing the token on exchanges. They then sold the coins deposited on the exchanges at a higher price. In addition, the price of ETH rose with the increase in average stock market entries in the middle of 2020 and 2021. The report adds that when there is an increase in stock market entry, it means a short-term high and a long-term low.
Crypto market and price manipulations
Koindeks.com As you follow, the crypto market has faced various price manipulations. These kinds of activities and arguments are no longer new in the crypto space. Vitalik Buterin, co-founder of Ethereum, explained his views on such a trend in a recent interview with the New York Times. Buterin stated that Terra’s team is attempting to use market manipulation to increase the value of LUNA. But it failed as the Terra ecosystem crashed without notifications.
As far as Ethereum is concerned, information from CryptoQuant showed that whales began to accumulate a large amount of assets on exchanges after Merge. The move created selling pressure on ETH. This, in turn, caused a drop in its price, causing the token to fall back to July levels. Subsequently, the price rose again. At press time, ETH is trading around $1,329. This shows that there is a loss in the chart.