A closely followed crypto analyst says Ethereum (ETH) is trading at a point where the reward far outweighs the risk.
Pseudonymous analyst Light tells his 146,000 Twitter followers that leading smart contract platform Ethereum looks poised to regain its bullish momentum after its steep correction from the all-time high of $4,800.
“ETHUSD long here is the most compelling spot since the November top. Down 40%+ with a low established at $2,200. so you’re not catching as much of a knife. [Bitfinex] billionaire bid tailwind. Idiosyncratic strength when everyone is in Ukraine myopia If there’s a long, this is it.”
Looking closer at the activity of Bitfinex whales, Light says deep-pocketed Ethereum investors are building massive long positions on the crypto derivatives exchange.
“Everyone larping like they’re at model UN. Meanwhile, Finex whales don’t play. 45,000 ETH added in last two hours.”
At time of writing, 45,000 ETH is worth over $117.90 million.
In November, Light also noticed that a massive Ethereum whale closed $2 billion worth of ETH margin longs, which eventually marked the top for second-largest crypto by market cap.
“Everyone is happy, fat, and complacent as suckling pigs. Unnoticed as they suckle on the teat of alts – the Ethereum Foundation shipped $90 million to Kraken to sell and the Bitfinex whale claimed $2 billion in ETH margin longs, most likely with the intent to quietly exit stage left.”
The crypto strategist is also following the activities of wealthy Bitcoin (BTC) holders. According to Light, he’s seeing signals that BTC whales are aggressively accumulating the largest crypto asset.
“Bitfinex whale ramping aggression:
– accelerating position build
– ~700 BTC in limit bids inserted.”
Featured Image: Shutterstock/camilkuo/Tomasz Makowski