A massive Ethereum buying volume appeared on the ETH/USD pair on Binance and another centralized exchange, showing that an anonymous whale or large investor was willing to get as much ETH as possible at the price of $1,228.
Possible reasons behind buying
First and foremost, ordinary buying power should have reflected on Ethereum’s price performance in some way at least, but according to the chart, the asset has not moved in a bit, which suggests that the massive buying is being consumed by massive selling or shorting.
The imbalance between buy and sell orders was on extreme levels, so almost any type of buying power injected on the market will not cause a spike in Ethereum’s value, unless large institutions decide to get back into the market.
But despite the lack of volatility on the market, such a large inflow of funds suggests there are some buyers left who will get exposure to the digital asset while it is heavily undervalued.
Could it be bad?
Unfortunately, massive buying power with the lack of upward volatility on the market may cause issues for Ethereum investors in the future because of the aforementioned imbalance between buy and sell orders.
If bulls lose the battle against the bears and the second biggest cryptocurrency asset on the market retraces, the anonymous trader will have to sell their massive purchase, which could be problematic considering the lack of liquidity that exists now.
At press time, a large portion of the cryptocurrency market remains under heavy pressure, with seven coins out of the top 10 by market capitalization losing from 0.5% to 6% of their value. As of now, Ethereum trades at $1,224.