Amidst this bearish market sentiment, traders and investors look at accumulating massive Ethereum (ETH) as it experienced a notable price drop. Today on August 3, 2024, an on-chain analytic firm lookonchain made a post on X that the smart trader with a 100% win rate purchased a notable 2,424 ETH worth $7.22 million.
Smart trader buys $68 million of ETH
Additionally, the same trader bought 4,000 ETH worth $12.58 million 24 hours ago.
According to lookonchain data, this smart trader has added 19,436 ETH worth $68.25 million since May 29, 2024, following the approval of spot Ethereum Exchange Traded Funds (ETFs). However, the average price of this massive ETH is approximately $3,587.
Meanwhile, this continuous accumulation by this smart trader indicates a perfect buying opportunity. The potential reason behind this notable accumulation is the ETH massive price drop in recent days.
In this situation, some look at this as a perfect buying opportunity while some sell off their holding. Additionally, this situation is mostly similar to post-spot Bitcoin ETF approval in the United States, where the market experienced a massive downside momentum. However, later market turned bullish and overall cryptocurrencies experienced significant upside momentum.
Ethereum price performance analysis
At press time, ETH is trading near the $2,930 level and has experienced a price decline of over 3.4% in the last 24 hours. Meanwhile, trading volumes during the same period declined by over 20%. This fall in trading volumes signals lower participation from investors and traders during bearish market sentiment.
Ethereum technical analysis and upcoming levels
According to expert technical analysis, ETH is there at a crucial support level of $2,900. Additionally, it looks like forming a bullish double-bottom price action pattern with a bullish divergence in the Relative Strength Index (RSI).
Based on the historical data, whenever ETH reaches this level it has experienced a massive upside move. Since April 2024, ETH has come to this level five times, and each time it has experienced a massive rally. As of now, there might be a similar expectation of an upside move from traders and investors.
If history repeats itself, then there is a high chance that ETH could experience a price surge to the $3,150 level.
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