Institutional Investors Bought The Ethereum Dip Suggesting It's Time For New All-Time Highs

Ethereum saw its market value plummet by nearly 22% on the weekend of April 17th, shedding over 500 points within hours. More than $1.16 billion worth of long and short ETH positions were liquidated across the board.

While most of us trembled with fear after the sudden crash, it seems like institutional investors and whales took advantage of the downswing to buy Ether at a discount.

CME’s ETH Futures volumes skyrocketed to $680 million, and total open interest crossed $295 million, marking a new record since the product launched on February 8th. In the meantime, on-chain data shows that nine new whales with 10,000 to 1,000,000 ETH joined the network over the past week.

These figures may seem insignificant to you at first glance, but the reality is that the sudden spike in buying pressure can translate into billions of dollars. When putting aside all the FUD that usually runs in crypto Twitter, it does seem like Ethereum has more legs to go up.

I did the math and determined that Bitcoin has gone up more than 220% from the 2017 all-time high of nearly $20,000. If Ethereum were to mimic BTC’s price behavior, it would have to gain 2,000 points from the current price levels to reach a new record high of $4,640.

It is no secret that Ethereum’s scalability issues pose a threat to its upside potential. You can see it yourself by just trying to transact on the network. You would have to pay high fees, making micro-transactions impossible.

Now imagine the headaches that developers have in the DeFi and NFTs sectors when deploying their smart contract applications.

The launch of ETH 2.0 hopefully helps ease the network’s congestion and allows Ethereum to become the world’s computer. But until then, it seems like institutional investors and whales are preparing for further upside. If scalability problems don’t seem to bother them, why should we worry?

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