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 from Cryptoquant, the volatility in the price of Ethereum has now brought bearish problems 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 analyst and data provider, recently published a report indicating that Ethereum whale investors deposited a significant amount of their ETH holdings on exchanges just before the merge event, causing From August 30, there was buying pressure in the price chart.
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 Give a Recovery Chance?
Whales liquidated their ETH positions following the merger, after accumulating a large amount of Ethereum to set off a bullish rally during the merger, resulting in a sharp price drop to $1,220. The data indicates that whales created a position where they accumulated enough holdings to push the price of ETH, with a mix of anticipation of a merge event and redemption of positions after the price of Ethereum touched their expected levels.
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.
Ethereum’s exchange flow graph showed a sudden increase in comparison to its general trend before and after the merge event, 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.
Besides, Ethereum is in a range below the $1,400 level, and it could soon start its bearish rally if it breaks the crucial $1,220 support level. Conversely, for a bull run to begin, 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.
