Ethereum fell below the $1,100 mark this week as the FTX-induced crash sent leading cryptos tumbling down. ETH clawed back from its weekly lows and climbed above the $1,200 level on Friday. The second biggest crypto in terms of market cap jumped 2% in the day’s trade and is looking to breach $1,200.
On-chain data and analytics firm Santiment has reported that whale activity in Ethereum has seen a dramatic increase this week. Both sharks and whales are accumulating ETH during the dip as it’s available at a discount right now.
The last time ETH slipped below the $1,000 level reaching $950 in June 2022, it nearly double in price reaching $1,982 two months later in August. Therefore, Ethereum bounced back in price quickly whenever it hit new lows in the indices.
Will Ethereum Spike 50% By the End of the Year?
Data from Santiment shows that Ethereum had plunged similarly in 2020 but bounced back nearly 50% in less than two months. Its price clawed back 50% after sharks and whales began accumulating ETH during the dip.
The same pattern played out in June 2022 when ETH dipped below $1,000 and rose to $1,982 in two months. Therefore, Santiment predicted that Ethereum is more likely to break its resistance of $1,200 and reach $1,700 by the end of the year.
“Ethereum’s active shark & whale addresses continue accumulating with prices less than a quarter of their all-time high levels a year ago. In Oct/Nov 2020, these 100 to 100k ETH addresses assisted in pushing ETH to a +50% price rise over 5 weeks,” tweeted Santiment.
However, this time around the markets are behaving differently due to the FTX and Alameda fiasco. A pump of 50% has slim chances unless the market witnesses a continuous rally. It is advised to wait and watch for the crypto trends before taking an entry position in Ethereum at this time.
At press time, Ethereum was trading at $1,196 and is up 1.8% in the 24 hours day trade. It is down 75.5% from its all-time high of $4,878, which it reached in November 2021.