The Ethereum whale investors have influenced the ETH price. Because they use their holdings to create the desired trend in ETH markets, this is why they affect ETH prices. Their impact is increasing, according to the CryptoQuant data.
The crypto space defines whales as entities or individuals who have a higher level of investment in a specific asset. Whales can manipulate the price of crypto by holding large amounts of cryptocurrency.
The perception that whales adversely affect the market has been held over time. Because they have the advantage in an uncontrolled market and can manipulate prices accordingly, this is why it has been a common perception. They do not want to cause instability in the market but to protect their interests and gain.
On-chain data provider ETH Whales were noted to have price manipulated the second most significant crypto assets by their exchange activity.
An analysis firm published a Quick Take on the Ethereum price pattern. An analyst recognized suspicious movements in whale activity on exchanges between 2020-2021.
Ethereum Whales Transferred Tokens to Exchanges to Hike Price
The post states that the Ethereum whales deposited most of their ETH holdings onto exchanges. They created a situation that inflated the token’s price and sold the deposits at increased costs.
Data shows that ETH’s value surged rapidly due to increased Ether balances on exchanges. The analyst pointed out that this sequence is inconsistent with the Ethereum market norm. The general trend is that Ethereum and other asset prices will plummet with more exchange inflows.
The post stated that Ethereum whales increased the Ether price after depositing the token to exchanges. Later, they sold the deposited coins to the businesses at an even higher price.
The price of ETH also soared at the same time as average exchange inflows rose between 2020-2021. The exchange inflow rises to signify a short-term high or long-term low.
The Crypto Market and Price Manipulations
Price manipulations have been a problem in the crypto market. These allegations and other activities are not new to the crypto market. Vitalik Buterin (co-founder of Ethereum) shared his views on this trend in a recent interview with The New York Times.
Buterin said that Terra’s team attempted market manipulation to increase LUNA’s value. It failed as the Terra ecosystem crumbled without any notifications.
CryptoQuant data indicated that Ethereum whales made a significant deposit on exchanges following the Merge. This action caused selling pressure and caused a drop in Ether’s price. The token reached its July levels.
