Ethereum recently dipped below $2,000, but some signs suggest it might be a temporary decline.
According to a blog post by crypto analytics firm Santiment, significant dormant movement has occurred on the Ethereum network, with two addresses moving long-standing ETH untouched for nearly five years. Historically, dormant asset movement often indicates major price shifts, usually in a positive direction.
The analysis shows a spike in dormant circulation, which typically coincides with price bottoms.
With the current spike ranking as the fifth-highest in the past six months, there’s a chance history could repeat itself. Additionally, the mean dollar invested age line has decreased over the past week, indicating a decline in the average age of investments in addresses. A younger mean dollar invested age often favors a bullish market setup.
Santiment also highlights two Ethereum addresses—0x7AE92148E79D60a0749fd6De374C8e81DfDdf792 and 0xca582d9655A50E6512045740DeB0de3a7EE5281f. Both accumulated 150,000 ETH in November 2018 and sold their entire holdings on April 18, 2023. While the sample size is insufficient to suggest market manipulation, the timing of their 2018 accumulation and recent sale could hint that these addresses had some insight into market movements.
The report emphasizes that the timing of the 150,000 ETH accumulation in late 2018 coincided with prices below $125 and just a couple of weeks before the market bottomed out and surged. This timing could suggest that the addresses had some knowledge about the market’s future trajectory.