Is it the right time to buy the dip on ETH?

Summary: Yes!

Based on on-chain data, particularly whale activity, it seems like a good time to buy the dip on ETH. Whales have recently bought a large amount at lower price points (such as $2,200 and $2,054), and the current price is around $2,011, close to these levels, indicating that big players remain bullish. Accumulation behavior by whales is often seen as a bullish signal, potentially indicating future price increases. However, market sentiment still leans bearish, with potential volatility risks in the short term. It is advisable to pay attention to the resistance level at $2,800, where approximately 800,000 ETH has accumulated; a breakout could trigger more buying.

Whale Activity Analysis

On-chain data shows that on March 1, investors accumulated about 500,000 ETH around $2,200, and another whale recently bought 17,855 ETH at an average price of $2,054 (about $36 million). These actions suggest that whales find the current price attractive and anticipate future increases.

Market Background

Although the Fear and Greed Index indicates a market sentiment leaning towards fear (32 points), the buying behavior of whales shows their confidence in the long-term prospects of ETH. Additionally, the decrease in ETH held on exchanges indicates that holders prefer to self-custody or stake, reducing selling pressure.

Risks and Opportunities

In the short term, prices may decline further, but the accumulation by whales and historical patterns (such as the price increase following whale accumulation in July 2024) suggest that this may be a good opportunity to buy the dip. It is recommended to decide based on your own risk tolerance.

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