After 2.8 Years of Inactivity, a Whale Purchased 3,659.83 ETH Worth $5.88M

The current market situation is very much in the ‘fear’ zone, but some investors believe this is an opportunity to buy the dip.

The current market situation is very much in the ‘fear’ zone, but some investors believe this is an opportunity to buy the dip.

On Friday, Altcoin Buzz reported that after being inactive for 2.8 years, a whale purchased 3,659.83 Ethereum (ETH) at a cost of $5.88 million. This has raised eyebrows as the cryptocurrency has been struggling in the volatile market environment.

A WHALE BOUGHT 3,659.83 $ETH WORTH $5.88M AFTER BEING NOT ACTIVE FOR 2.8 YEARS.WHALES ARE WAKING UP! 🐳 pic.twitter.com/Qyo5ANA0jT

Analyst Crypto Patel noted that the current Ethereum has reached the “fear” phase, which in the past has been associated with a massive increase in prices. In other fear-based periods, Ethereum’s returns were 22,800%, 5,917%, and 366%. Such returns suggest that for those with a long-term perspective, the current turbulence may provide an opportunity to achieve high long-term returns.

On the technical front, Ether is now in a “value regression zone,” meaning that it is on a path towards a lower value. This zone has historically been a point where long-term investors make asset purchases, hoping for a future rise in value. Although the market is rather unpredictable at this point, some claim that such situations are the best time to buy Ethereum.

This indicates that smart money tends to accumulate during these phases, capitalizing on panic selling by less experienced investors. As awareness increases, more investors may shift to Ethereum in an attempt to capitalize on its future outlook. This recent whale transaction may suggest early signs of accumulation, although there is no evidence of widespread buy-and-hold investment yet.

The cryptocurrency remains one of the best to invest in, as it has consistently risen from periods characterized by fear. It has historically rewarded holders who stayed patient during volatile periods.

The analyst refers to the current market conditions as “the entry of a lifetime” for long-term holders. This makes it rather convenient for new entrants to invest in Ethereum, given that Ethereum has demonstrated to the world how it rebounds and grows after being rattled.

A common belief among traders is that better days are ahead for Ethereum, and as such, prices are expected to rise in the long run.