Whale investors in Ethereum (ETH) have long exerted considerable control over the token’s market price movement. Since information from CryptoQuant suggests that whales are influencing the price of ETH. Through their exchange activity, this influence has piqued new interest.
An analyst claimed in a Quick Take on the blockchain data analytics website. Between 2020 and 2021, whale behavior on exchanges triggered red flags. According to the post, whales deposited ETH onto exchanges, raised prices, and then sold at higher prices.
The theory is supported by statistics that demonstrate. That ETH’s price surged quickly even as its balance on exchanges increased. The analyst said that this is not typical of the ETH market. The price of ETH and other cryptocurrencies turns bearish. When exchange inflows increase, as demonstrated by the current market.
“Whales deposit Ethereum into the exchange and raise prices to sell it at a higher price. Ethereum’s price rose rapidly as exchange inflow (mean) remained increased between 2020 and 2021. When exchange inflow (mean) increases, it was a short-term, long-term low,” the post said.
The theory is supported by statistics that demonstrate that ETH’s price surged quickly even as its balance on exchanges increased. The analyst said that this is not typical of the ETH market. The price of ETH and other cryptocurrencies turns bearish when exchange inflows increase, as demonstrated by the current market.
Market manipulation claims are not new in the cryptocurrency market
The discovery follows the price of ETH whales starting to massively sell off their holdings on exchanges following the Merge. According to U.Today, strong selling pressure caused the price of ETH to drop to levels seen in July. At the time of writing, the native token of the Ethereum blockchain is trading at over $1,350, up 4.04% over the last 24 hours.
Concerns about market manipulation are not new in the cryptocurrency sector. In a recent interview with the New York Times, Ethereum co-founder Vitalik Buterin expressed his opinion that the team behind the defunct Terra (LUNA) tried to manipulate the market to maintain LUNA’s value.
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