Institutions Sell $105 Million Worth of ETH During Correction: Is it Time to Buy?
Institutions sold ETH worth $105 million during the latest correction, sparking concerns among investors. However, on-chain data suggests that this could actually be an opportunity to buy before another rally starts.
Four whales, including notable institutional investors, participated in selling off some of their Ethereum holdings as the altcoin’s price plummeted by over 7% in just 24 hours. The total amount sold was a staggering $105 million, with Cumberland, a trading firm, leading the pack by sending 17,206 ETH to exchanges.
While the reasons behind the sell-offs remain unclear, some analysts believe that this could be a normal profit-taking event or a way to let go after underperformance. However, the recent decline in Ethereum’s price to $3,169 has raised concerns among investors.
On the bright side, on-chain data from Santiment suggests that the recent correction could be a chance to buy at lower prices before a potential rally begins. The Mean Dollar Invested Age (MDIA) for Ethereum spiked, indicating that old coins are moving and the cryptocurrency could be undervalued.
Additionally, network growth for Ethereum has shown signs of improvement, with a significant number of new addresses interacting with the project. This could potentially drive demand for ETH and help the price action recover.
Despite the drop in circulation, which could be a positive sign of less selling pressure, investors are advised to keep a close eye on the market and monitor key metrics to make informed decisions about their portfolios. As Ethereum’s price hovers around $3,262, the next path for the altcoin remains uncertain, but there is optimism that a potential rally could be on the horizon.