Ethereum investors have taken great advantage to generate massive profits during the Ethereum Merge event. ETH whale investors seem to have significantly impacted the price through their massive holdings as they used their ETH holdings to create a desired wave during the merger event.
According to data by CryptoQuant, the Ethereum price turmoil now brings bearish woes for investors.
Price Manipulation Increases
In the crypto space, whale investors are the ones who majorly influence and control the crypto coins’ prices according to their desired ways. In simple words, holding a massive amount of any crypto creates an easier way to pump or dump any cryptocurrency’s price, resulting in price manipulation and a significant loss for small-cap investors.
CryptoQuant, an on-chain data analyzer, and data provider, recently published a report indicating that Ethereum’s whale investors deposited a significant amount of their ETH holdings to exchanges just before the merge event, creating buying pressure in the price chart from 30 August.
The data further indicates that the buying pressure initiated a bull run for Ethereum and pushed its price to $1,800 during the merger event.
Does Ethereum Stand A Chance For Recovery?
After depositing massive amounts of Ethereum during the merge to establish a bullish rally, whales liquidated their ETH positions after the merge, resulting in a sharp price fall to $1,220. The data indicate that whales created a situation where they deposited enough holdings to hike ETH’s price with a mix of anticipation of the merge event and cashed out the positions after the Ethereum price touched their expected level.
Analysts show that the main reason behind this price manipulation was to maximize profits by selling holdings at the high price of Ethereum during the crypto winter. The Ethereum Merge event became a messiah for bringing an excellent opportunity to execute the operation.
The graph of Ethereum’s exchange flow saw a sudden increase before and after the merge event compared to its usual trend, confirming the price manipulation.
According to CoinMarketCap, Ethereum is currently trading at $1,330 with red candles on the daily price chart. However, Ethereum is continuously trying to break $1,381 but facing rejection. Our Ethereum price analysis says that ETH can make a price correction downward as the EMA-20 and EMA-50 are leaning down.
Furthermore, Ethereum has been range bound below the $1,400 level, and it can soon start its bearish rally if it breaks the crucial support level at $1,220. Conversely, to start a bull run, Ethereum needs to break two resistance levels at $1,350 and $1,481, respectively.
Price manipulations have become a common issue in the crypto market, and the Ethereum co-founder also confirmed such trends in a recent interview. However, it always does not go in their favor, as Buterin highlighted that whales initiated massive deposits to increase LUNA’s value, but it failed as LUNA crashed without any prior warning.