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Ethereum Whales Buy Back at Higher Prices – Is It Conviction or Fear of Missing Out?
In a stunning move, an Ethereum whale has purchased 16.5k ETH worth $46.4 million from Wintermute at a higher price of $2,818. This massive buyback comes after the same entity sold 30,000 ETH worth $78.63 million to realize a profit of $6.72 million just one day prior.
This decision raises an important question: is this whale’s behavior driven by conviction or fear of missing out (FOMO)? The answer lies in analyzing the broader market trends and the motivations behind such large-scale transactions.
Firstly, it is essential to acknowledge that whales are known for their conviction-based purchases. When these entities decide to buy back an asset at a higher price, it reflects strong conviction and rising demand. In this case, the whale’s purchase of 16.5k ETH worth $46.4 million clearly indicates a growing interest in Ethereum.
Moreover, data suggests that large holders are accumulating more ETH than they’re selling, with the Large Holders Netflow to Exchange Netflow ratio hitting a two-week low at -2.83. This sharp dip signals more Ethereum flowing into cold storage rather than exchanges – a classic sign of accumulation.
Furthermore, a staggering 140,000 ETH worth $393 million has been withdrawn from exchanges, which further reinforces the notion that demand is on the rise. It seems whales are stocking up on Ethereum as they anticipate significant long-term growth.
Despite this conviction-based purchasing activity, there is also a strong possibility that FOMO is at play here. The price of ETH did drop 1.76% over the last day to $2,756, which could have triggered this whale’s impulsive decision to buy back Ethereum at a higher price.
The question remains: will these whales continue to accumulate Ethereum in this manner, or are they merely buying back due to FOMO? It is crucial to keep an eye on market developments and the motivations behind such large-scale transactions.
Source: ambcrypto.com
