Ethereum: Whale interest in ETH rises, but can it sustain the momentum
- 1inch made use of limit orders to gain more exposure to ETH.
- Fidelity announced plans for an ETH ETF.
Ethereum’s [ETH] price hovered around the $2000 mark for quite some time after its initial spike. This has led many ETH holders to believe that it will eventually surpass that mark and reach new heights. Some movements by large holders could further help this narrative.
Inch by Inch
1inch’s team seems to be employing Uniswap V3-style positions as limit orders to purchase approximately $11 million worth of ETH.
The wallet associated with 1inch’s team has transferred $5 million in USDT and $5.9 million in USDC to two Uniswap V3-style liquidity positions, spanning prices from around $1965 to approximately $1800.
If the price of ETH decreases, these positions will automatically start buying ETH using the provided USDT and USDC, and they will be entirely in ETH once the price reaches $1800.
1inch’s Team appears to be using Uniswap V3-style positions as limit orders to buy ~$11M worth of ETH.
In the past 5 hours, 1inch’s Team wallet has sent $5M in USDT and $5.9M in USDC to two Uniswap V3-style liquidity positions, between the prices of ~$1965 and ~$1800.
If ETH’s… pic.twitter.com/oZvgXXDgvt
— Arkham (@ArkhamIntel) November 17, 2023
Some support for ETH
1inch’s team is using a strategy that involves Uniswap V3-style positions, which work like limit orders to buy ETH. They moved $5 million in USDT and $5.9 million in USDC to two specific positions on Uniswap.
These positions are designed to buy ETH if its price falls within a certain range, between approximately $1965 and $1800.
If the price drops, the positions automatically use the USDT and USDC to purchase ETH, and they will continue doing so until the price hits $1800. This strategy allows 1inch’s team to take advantage of potential lower prices for ETH.
The strategy employed by 1inch’s team, using Uniswap V3-style positions as limit orders to buy ETH, can have a positive impact by potentially supporting the price of ETH.
By strategically placing buy orders within a specified price range, they create demand for ETH if its price drops. This demand can counterbalance selling pressure, preventing the price from falling too sharply.
Additionally, such trading strategies can contribute to market liquidity and stability. If successful, this approach may attract other traders and investors, fostering confidence in ETH’s market resilience.
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Overall, it introduces a mechanism to mitigate downward price movements and encourages a more stable market environment for Ethereum.
Additionally, ETH can also be aided by the ETF hype around the crypto. Recently, Fidelity, a multinational financial services corporation filed for an ETF.