The Ethereum whale investors have maintained an influence on ETH price. This is because they use their holdings to create their desired trend in the ETH market. But their impact is raising more brows as per the data from CryptoQuant.
In the crypto space, the whales are persons or entities with higher investment holding of a particular asset. Holding a significant amount of cryptocurrency makes it easy for whales to manipulate and influence the crypto price.
Over time, the perception has always been that the whales project negative influences on the market. This is because they always take the upper hand in the uncontrolled market to exert a manipulation pattern on prices. The intention is not to bring instability to the market but to ensure their interests and gains.
The on-chain data provider noted ETH whales have engaged in price manipulations for the second largest crypto assets through their exchange activity.
The analytics firm posted a Quick Take on the Ethereum price pattern. An analyst acknowledged suspicious moves with the whales’ activity on exchanges between 2020 and 2021.
Ethereum Whales Moved Tokens To Exchanges To Hike Price
According to the post, the Ethereum whales deposited most of their ETH holdings on exchanges. They created a situation that spiked the token’s price and sold the deposits using the hiked prices.
Data indicates that ETH’s price surged quickly amid an increase in Ether’s balances on exchanges. However, the analyst noted that this sequence contradicts the average market norm for Ethereum. The usual trend is that when exchange inflows increase, the prices of Ethereum and other assets will plunge.
Hence the post mentioned that the Ethereum whales raised the price of Ether after depositing the token into exchanges. They later sold off the deposited coins from the exchanges at a higher price.
Also, the price of ETH surged just as the average exchange inflows increased between 2020 and 2021. It added that when there’s a rise in exchange inflow, it signifies a short-term high and long-term low.
Crypto Market And Price Manipulations
The crypto market has faced several price manipulations. Such activity and allegations are no longer new in the crypto space. The co-founder of Ethereum, Vitalik Buterin, aided his view on such a trend during a recent interview with the New York Times.
Buterin stated that Terra’s team tried using market manipulation for hiking LUNA’s value. But it seemed it failed as the Terra ecosystem came crumbling without notifications.
In the case of Ethereum, data from CryptoQuant indicated that the whales started a massive deposit of their holdings on exchanges after the Merge. The action created selling pressure on Ether and brought a drop in its price, causing the token to hit its July levels.
Subsequently, the price later rose again. At the press time, ETH is trading at around $1,329, indicating a loss on the chart.
Featured image from Pixabay, a chart from inew.news