The quant showed how trends in the BitMEX exchange reserve have affected the value of Ethereum over the past few years.
BitMEX Ethereum Whales Have Shown Smart Currency Behavior In Recent Years
In a CryptoQuant Quicktake post, the analyst discussed the pattern in the ETH terminal of the BitMEX platform. “Exchange location” here refers to the on-chain metric that keeps track of the total amount of Ethereum sitting in the wallets of any centralized exchange.
If the value of this metric increases, investors will make a total deposit on the platform right now. As one of the main reasons why investors turn to trading for selling purposes, this trend can have potential bearish effects on asset prices.
On the other hand, the decline of the index suggests that the total supply of cryptocurrency is coming from the wallets associated with the exchange. Investors usually take their coins to protect themselves when they plan to hold for a long time, so such a trend may work for the coin.
Now, here is a chart showing the trend in BitMEX’s Ethereum exchange reserve over the past few years.
As seen in the graph above, the Ethereum exchange cache on the BitMEX platform saw a sharp increase back in mid-2022. This can suggest that investors make a huge net profit from trading.
According to the price, the platform has a large number of whales, so this large entry activity will show the behavior of these ridiculous investors.
Interestingly, the index’s rapid growth came before ETH hit a bear market decline. So, it seems that these big owners expected things to get worse for the property, so they started selling while they had the chance.
Another notable change in the BitMEX vault occurred in September 2023, when whales released a large amount of Ethereum, almost completely retracing the previous bear market growth.
From the chart, it is clear that shortly after this complete breakout occurred, the price of the cryptocurrency began a sharp rally that would eventually rise above the $4,000 level for the first time since December 2021.
It would seem that these wise money whales were also accurate in their understanding of the market, as they were able to time their purchases at the right time of the rally.
Since these stocks came out in September, the index has not shown any significant changes, as its value has been moving sideways. Given the historical trend, any new deviation may be worth watching, as it may spell another change for Ethereum.
Trading currency of ETH
Ethereum showed a push to recover from yesterday’s low, but the run has been muted as ETH is still trading around $3,400 today.
