Crypto analyst CryptoQuant provided data that shows Ethereum whales have been significantly impacting asset’s value
Ethereum (ETH) whale investors have long held significant influence over the token’s price movement on the market. This influence has taken on new curiosity as data provided by CryptoQuant indicates 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 argument is based on data that shows that the price of ETH rose rapidly even as the balance of ETH on exchanges increased. This is not the market norm on the ETH market, the analyst noted. As exemplified by the current market, the price of ETH and other crypto turns bearish when 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.
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Market manipulation allegations not new on crypto market
The observation comes after the price of ETH whales began massively dumping their holdings on exchanges after the Merge. U.Today reported that massive selling pressure drove down the price of ETH to July levels. The Ethereum blockchain native token is changing hands at around $1,350, up 4.04% in the last 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.