Massive buying volume appears on market for no reason at all
Massive Ethereum buying volume appeared on ETH/USD pair on Binance and another centralized swapshowing that an anonymous whale or a large investor was willing to get as much ETH as possible at the price of $1,228.
Possible reasons behind buying
First and foremost, ordinary buying power should have reflected on Ethereum’s price performance in some way at least, but according to the chart, the asset has not moved in a bit, which suggests that the massive buying is being consumed by massive selling or shorting.
The imbalance between buy and sell orders was at extreme levels, so almost any type of buying power injected into the market will not cause Ethereum’s value to spike unless large institutions decide to return to the market.
But despite the lack of volatility on the market, such a large inflow of funds suggests there are some buyers left who will get exposure to the digital asset while it is heavily undervalued.
Could this be bad?
Unfortunately, the massive buying power with the lack of upside volatility in the market may cause problems for Ethereum investors in the future due to the aforementioned imbalance between buy and sell orders.
If bulls lose the battle against the bears and the second biggest cryptocurrency asset on the market retraces, the anonymous trader will have to sell their massive purchase, which could be problematic considering the lack of liquidity that exists now.
At press time, much of the cryptocurrency market remains under severe pressure, with seven coins in the top 10 by market capitalization losing 0.5% to 6% in value. Currently, Ethereum is trading at $1,224.
