ETH Price Falls Below $2,000 Despite Whales Accumulation, Ether Holders Face Losses

Ethereum (ETH) appears struggling and currently is at a critical juncture due to robust growing investor interest amid extensive bearish market sentiment. Today, Onchain Lens spotted a whale who accumulated massive amounts of Ethereum tokens, facing unrealized losses.

Whale holds ETH at a loss

Today, according to data from Onchain Lens, the whale deposited 4,250 ETH worth $8.06 million into DBS Bank.  In total, the whale deposited 4,922 ETH ($9.7 million) into the DBS Bank.

Over the past four months, the whale accumulated 30,555 ETH worth $104.74 million.  Currently, the whale holds 25,808 ETH ($48.8 million), facing a loss of 46.23 million.

Why Ether holders are making losses

Ethereum has witnessed a substantial downtrend in recent weeks, contributing to losses for holders. The asset has been in a strong downward movement over the past month. It is now trading below the $2,000 mark, precisely standing at $1,894, after seeing a decline of 8.4% over the past 24 hours. The asset has experienced significant decreases in weekly and monthly timeframes, down by 9.7% and 28.8% respectively.

This sharp price fall has left Ethereum holders in a difficult situation, with most seeing their investments plunged into the red, making losses. As per metrics from IntoTheBlock, only 45% of Ether holders are currently in profit. These are investors who bought ETH at lower prices. However, 55% of ETH holders are sitting at a loss while the remaining 3% of investors are at break-even.

With that huge number of investors at a loss, it is risky that many could decide to liquidate their holdings to minimize further losses, possibly causing ETH prices to fall further. However, despite such extensive losses, some investors, commonly known as whales, appear to accumulate and hold their Ether strongly.

It is common to see small investors panic and sell their assets at losses. However, Ether whales are embracing a different approach. Rather than selling, they continue to acquire, suggesting that they see the market dip as a purchasing opportunity.

Data from IntoTheBlock indicates that 55% of ETH tokens are being held by whales. This indicates that big investors are not just holding their tokens but are actively purchasing more.

Ethereum is currently facing a tough situation. Despite the robust acquisition by whales. ETH‘s price continues to experience huge selling pressure from small investors. If selling pressure continues to overpower buyers, the asset could witness a further fall. However, big investors are holding strong as their buying behavior suggests confidence in price recovery soon.