During the recent market correction, institutional investors sold off Ethereum (ETH) holdings worth $105 million, triggering a 7% decline in the altcoin’s price. Notable whales, including trading firm Cumberland and others, deposited millions of dollars worth of ETH to exchanges, indicating profit-taking or portfolio rebalancing. The sell-offs led to ETH dropping to $3,169, but the cryptocurrency showed signs of recovery, reaching $3,262 as investors awaited a potential rally.
Despite the sell-offs, on-chain data suggested that ETH could be undervalued, presenting an opportunity to buy at lower prices before a potential rally begins. Metrics such as Mean Dollar Invested Age (MDIA) showed a spike in inactive coins, hinting at a possible undervaluation. Additionally, analyzing network growth revealed a decrease in user adoption following the price decline, which could impact demand for ETH. However, a drop in circulation could alleviate selling pressure and potentially lead to a positive price movement for Ethereum in the near future.
If network growth and demand for ETH improve, the price action may see a positive shift, lifting Ethereum out of its recent slump. The combination of on-chain data insights and market dynamics illustrates a complex but potentially promising scenario for ETH investors looking to capitalize on the recent correction. As whales and institutions readjust their portfolios, Ethereum’s price trajectory remains uncertain but offers a valuable opportunity for strategic investors to enter the market at potentially favorable prices.