The Ethereum market experienced significant volatility, with some experts suggesting deliberate price manipulation by major holders, commonly referred to as "whales." Ethereum's value saw sharp swings, raising concerns among investors and analysts.
On Monday, February 4, Ethereum's price dramatically fluctuated from approximately $2,900 to a low of $2,120 before rebounding strongly. Despite this intraday decline, the cryptocurrency managed to close with a 26% green wick, a rare recovery in such a brief period.
Analysts have linked this price movement to broader macroeconomic conditions, specifically the trade tensions initiated by former U.S. President Donald Trump. The imposition of tariffs on Mexico and Canada early in the day led to an agreement that triggered a swift recovery in global markets, including cryptocurrencies.
In the midst of this, a commentator known as “intern” (@intern), who is the director of growth at Monad, expressed concern on social media, posting: “ETH is dying right in front of us. honestly never thought this would happen.” In a more measured response, Ethereum co-founder and ConsenSys CEO Joseph Lubin remarked that such volatility is not unusual for the asset. He suggested that "whales" exploit economic unrest and negative sentiment to manipulate the market for their benefit.
Lubin's comments suggest that these large investors take advantage of market volatility, amplified by macroeconomic changes, to pressure less experienced holders into selling. Prominent crypto traders also weighed in, highlighting the actions of whales in influencing market dynamics.
Trader Hsaka (@HsakaTrades) cautioned newcomers not to attribute Ethereum's decline solely to organic sentiment. He argued that whales use tactics such as placing large, misleading sell orders to pressure others into selling at lower prices before buying back later.
The concept of "spoofing," where large orders are used to incite panic selling, has long been discussed in crypto circles. This strategy allegedly enables significant players to acquire holdings at more advantageous prices.
Renowned trader Pentoshi (@Pentosh1) noted Ethereum's underperformance compared to Bitcoin over the past three years, cynically commenting on the persistent market manipulation: “3 year shake out so far. Hope you’re right.”
The question of why whales might specifically target Ether was raised by community member EVMaverick392.eth (@EVMaverick392). Lubin responded by comparing the situation to bank robberies, suggesting that the recent uncertainty around Ethereum makes it an attractive target: “Why do bank robbers rob banks—or used to? The (unjustified) FUD toward the Ethereum ecosystem is currently most pronounced.”
As of the latest market update, Ethereum was trading at $2,704.