How are you all? I hope you are well, having a peaceful day. Today, I will talk a little about Ethereum—I have actually been digging into this market quite a bit over the past few days, because the beginning of November has been really bumpy.
I saw the price of Ethereum drop by about 12% in a flash, reaching the $3,000 level in a short time. At first, I thought—are those old crash days coming back again? But the more I look into it, the more I understand that the situation is completely the opposite. Those we usually call “whales”—meaning big investors—are taking this decline as an opportunity. They have bought about $1.37 billion worth of Ethereum in just three days.
I thought, this huge amount of money suddenly entering the market, it can't be just a coincidence. I looked at some on-chain data - I see that ETH reserves on exchanges are now the lowest since 2016. This means that people are withdrawing their coins from exchanges to hold them for the long term. Usually, this is a very positive sign, because the selling pressure in the market then decreases a lot.
Another interesting thing to note is Santiment's MVRV data. Those who have been trading in the last 30 days are now losing about 12% on average. Those who have been active for a year are also slightly negative. History shows that at times like these, when both the short and long-term MVRVs go negative, the market is usually in a good "buying zone." This means that big players understand that buying now is relatively low risk.
What caught my eye was the move by Bitmine Immersion Technologies. This company has been consistently buying deep—$250 million in October, then $113 million, and now $139 million worth of ETH. Their consistent buying means they have faith in the market. When big institutions take risks rather than being afraid, you have to understand—they are understanding something.
Personally, I think that there is a silent preparation going on in the market. The price is down for now, but the downside is gradually strengthening. There may not be a big rally right now, but there is a possibility. Yes, there is risk—there always is. But this buying by big investors, the reduction in reserves on exchanges, and this green signal from on-chain data—all together, one thing is clear: those who are patient now may win in the next wave.
I think the story of Ethereum doesn't end here. Rather, the next chapter may begin in the midst of this decline.
Posted Using INLEO