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Ethereum whales scoop up the altcoin as ETH price hits the $1,200 level

  • Ethereum price is close to a psychological support level at $1,200 after yielding 7% losses over the past week. 
  • Tether coordinated with a third party to move 1 billion USDT from Solana to the Ethereum blockchain on Friday. 
  • Analysts expect Ethereum price to recover and make a comeback above the 200-day moving average at the $1,600 level. 

Ethereum whales have been scooping up the altcoin through the recent dip in its price. The second-largest cryptocurrency by market capitalization is close to its psychological support level at $1,200 and analysts expect a recovery in ETH price. 

Also read: JP Morgan, Well Fargo, Bank of America potentially exposed to Samuel Bankman-Fried’s FTX exchange

Ethereum accumulation by large wallet investors picks up pace

Large wallet investors on the Ethereum blockchain scooped up the altcoin. Whales engaged in mass accumulation of ETH through the recent dip in the second-largest crypto by market cap. 

Ethereum price nosedived from the $1,293 level, close to the psychological support level of $1,200. The altcoin yielded 7% losses last week and 21% over the past two weeks. FTX exchange contagion spread to top cryptocurrency entities in the space and negatively influenced Bitcoin, Ethereum and altcoin prices. 

Ethereum shark and whale addresses aggressively accumulated ETH

Ethereum Shark and Whale Addresses aggressively accumulated ETH 

Tether swaps 1 billion USDT tokens from the Solana to Ethereum blockchain

Tether announced a chain swap, moving USDT tokens from one blockchain to another. On Friday November 18, 1 billion USDT tokens were swapped from the Solana blockchain to Ethereum. 

This move by the stablecoin giant followed Binance’s decision to temporarily delist USDT on the Solana blockchain. Multiple cryptocurrency exchanges followed Binance and delisted Solana-based stablecoins without providing an explanation. This unusual move followed the FTX exchange collapse and bankruptcy filing. BitMEX, OKX and Bybit were among the exchanges that delisted USDC and USDT on the Solana blockchain. 

Binance –  the largest exchange by trade volume –cited “internal assessment and review” as the cause for temporary delisting of stablecoins based on the Solana blockchain. 

Tether’s move to bring Solana based stablecoins to the Ethereum blockchain is bullish for ETH price as it is likely to boost on-chain activity and utility. 

Analysts predict an Ethereum price rally

Analysts evaluated the Ethereum price trend and predicted a recovery in the altcoin. Simon Chandler, a crypto analyst, believes Ethereum price is likely to bounce back to its 200-day moving average at $1,600. 

ETHUSD price chart

ETHUSD price chart 

Chandler argues that Ethereum’s 30-day moving average is below its 200-day, signaling that ETH is in a prolonged bear market. The expert believes that Ethereum price is likely to rebound sooner or later. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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