Crypto analyst CryptoQuant provided data that shows Ethereum whales have been significantly impacting asset’s value
Ethereum (ETH) whale investors have long had a significant influence on the token’s price movement on the market. This effect has captured new curiosity in the form of data provided It has been pointed out by Cryptoquant that whales are manipulating the price of ETH with their exchange activity.
In a Quick Take posted on the blockchain data analytics site, an analyst argued that between 2020 and 2021, the activity of whales on exchanges raised suspicion. The post maintained that the whales deposited ETH onto exchanges and proceeded to raise prices, and then sell at these elevated prices.
The logic is based on data which shows that the price of ETH rose sharply despite the increase in the balance of ETH on the exchanges. The analyst said that this is not the market benchmark on the ETH market. As exemplified by the current market, the price of ETH and other cryptos turn bearish as exchange inflows rise,
“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.
Allegations of market manipulation on the crypto market are not new
This observation came after the price of ETH whales started massively dumping their stake on exchanges after the merge. U.Today reported That heavy selling pressure drove the price of ETH down to July levels. The Ethereum blockchain native token is changing hands at around $1,350, up 4.04% over the past 24 hours at the time of writing.
Market manipulation concerns are not new to the crypto market. In a recent interview with the New York Times, co-founder of Ethereum Vitalik Buterin opined that the team behind the collapsed Terra (LUNA) attempted to manipulate the market in order to prop up the value of LUNA.
