In a dramatic market response to former President Trump’s strategic crypto reserve announcement, Ethereum (ETH) experienced significant price volatility, revealing key insights into whale behavior and institutional accumulation patterns. Trump’s shocking $17B reserve announcement triggered massive price swings across major cryptocurrencies.
Price Volatility and Whale Movements
ETH’s price journey has been particularly volatile, moving from $2,191 on March 2nd to a peak of $2,542 on March 3rd, before settling at $2,050. According to Glassnode data, this volatility has unveiled strategic movements among major ETH holders:
- Large-scale investors holding 1.75 million ETH (acquired at $3,200) maintained their positions despite being 10% down
- A significant 500,000 ETH purchase occurred at $2,200 on March 1st
- New resistance level established at $2,800 with 800,000 ETH accumulation
Institutional Accumulation Signals
Market analysts have identified growing institutional interest, highlighted by a recent whale purchase of 17,855 ETH (approximately $36 million) at $2,054. This transaction, coupled with broader accumulation patterns, suggests strong institutional confidence in ETH’s current valuation.
Technical Analysis and Market Outlook
CryptoQuant analysis reveals ETH’s MVRV ratio has dropped below 1, historically a strong indicator of undervaluation. Additional bullish signals include:
- Increasing number of active ETH addresses
- Growing institutional holdings
- Strong support level at $2,100
Market Implications
While technical indicators suggest a potential bullish trend, analysts remain cautious due to macroeconomic factors. The impact of Trump’s crypto reserve announcement continues to reverberate through the market, with potential implications for future monetary policy and crypto adoption.