This Data Shows Ethereum Whales Are Manipulating ETH Prices, Is That True?


Ethereum whale investors have maintained an influence on the price of ETH. This is because they use their holdings to create the desired trend in the ETH market. But its impact is raising more eyebrows according to data from cryptoquantification.

In the crypto space, whales are people or entities with a higher investment in a particular asset. Holding a significant amount of crypto makes it easy for whales to manipulate and influence the price of crypto.

Over time, the perception has always been that whales project negative influences on the market. This is because they always take the lead in the wild market to exert a pattern of price manipulation. The intention is not to bring instability to the market but to secure your interests and profits.

The on-chain data provider noted that ETH whales have engaged in price manipulations for the second largest crypto assets through their trading activity.

The analytics firm posted a quick take on Ethereum’s price pattern. An analyst recognized suspicious movements with the activity of the whales in the exchanges between 2020 and 2021.

Ethereum Whales moved tokens to exchanges to increase the price

According to the post, Ethereum whales deposited most of their ETH holdings on exchanges. They created a situation that caused the price of the token to skyrocket and sold the deposits using the high prices.

The data indicates that the price of ETH rose rapidly amid a surge in Ether balances on exchanges. However, the analyst noted that this sequence contradicts the average market norm for Ethereum. The usual trend is that when trading inflows increase, the prices of Ethereum and other assets crash.

Thus, the post mentioned that Ethereum whales increased the price of Ether after depositing the token on exchanges. They later sold the deposited coins from the exchanges at a higher price.

Furthermore, the price of ETH increased just as the average exchange inflows increased between 2020 and 2021. He added that when there is an increase in exchange inflow, it means a short-term high and a long-term low.

Crypto market and price manipulations

The crypto market has faced several price manipulations. Such activity and allegations are no longer new in the crypto space. Ethereum co-founder Vitalik Buterin supported his view on this trend during a recent interview with the New York Times.

Buterin stated that the Terra team attempted to use market manipulation to increase the value of LUNA. But it seemed like it failed as Terra’s ecosystem fell apart without notifications.

In the case of Ethereum, data from CryptoQuant indicated that whales began a massive deposit of their holdings on exchanges after the Merger. The action created selling pressure on Ether and caused its price to drop, causing the token to hit its July levels.

Subsequently, the price rose again later. At press time, ETH is trading at around $1,329, indicating a loss on the chart.

ETH drops below $1,350 on l chart ETHUSDT at Tradingview.com
Featured image from Pixabay, a chart from TradingView.com