A crypto wallet affiliated with 1inch Investment Fund has made a noteworthy purchase of 6,088 Ether (ETH), equivalent to $10 million, as per data provided by Lookonchain, a prominent blockchain analysis platform. This strategic move raises questions about the rationale behind investing in Ethereum at a time when its prices have been facing downward pressure. The 1inch Investment Fund, associated with one of the largest decentralized exchange (DEX) aggregating protocols, 1inch Network, continues to play an active role in trading Ethereum.

A Bearish Trend for Ethereum:
Despite the recent dip in ETH prices, which occurred around ten days ago, the precise reasons behind 1inch Investment Fund’s decision to acquire Ethereum remain undisclosed. On August 17, Ethereum, along with Bitcoin and the broader crypto market, experienced a significant drop. ETH witnessed a 15% decline from its previous level of approximately $1,800. Since then, the coin has yet to revisit that price point, and current spot rates indicate a consolidation phase.

The prevailing Ethereum candlestick arrangement on August 28 suggests that the coin is presently consolidating within the boundaries of the bearish candlestick observed on August 17. While prices remain relatively stable with lighter trading volumes, the overall pattern indicates a bearish formation. At the time of writing, Ethereum is being traded at around $1,650, slightly lower than the effective purchasing price of the 1inch Investment Fund.

Market Impact and Future Outlook:
Although 1inch Investment Fund’s optimistic acquisition of Ethereum bodes well for the coin’s future prospects, it has yet to stimulate substantial demand and uplift Ethereum from its existing consolidation phase. Presently, the coin is trending lower, implying that the path of least resistance remains predominantly southwards. As long as demand fails to shift the dynamics, the medium-term formation of Ethereum may continue to be influenced by the recent bearish momentum. A crucial price level to watch for a potential shift would be a rise above $1,900.

Analysis of 1inch Investment Fund’s Activities:
Lookonchain has previously highlighted various transactions involving 1inch Investment Fund. For instance, during the first quarter of 2023, the fund accumulated a total of 17,000 ETH, valuing $26.8 million. The average purchasing price during that period stood at $1,569. The fund subsequently sold 11,000 ETH at $1,906, generating a profit of approximately $3.7 million. As of now, the 1inch Investment Fund holds 9,453 ETH, which amounts to approximately $15.61 million based on current spot rates.

Apart from Ethereum, the fund’s portfolio comprises over 23 other tokens, according to Etherscan. Notably, their largest holding, as of August 28, is USDT, the world’s most liquid stablecoin, with a market value exceeding $31.75 million. Additionally, the fund holds a significant amount of Uniswap’s governance token, UNI, valued at approximately $1.85 million, while their USDC holdings only amount to $52. According to data from Debank, 1inch Investment Fund possesses a diverse digital asset portfolio, totaling $80.3 million.

The recent acquisition of 6,088 ETH by 1inch Investment Fund for $10 million amidst the ongoing depressed prices of Ethereum stands as a thought-provoking move within the crypto market. While the rationale behind the purchase remains undisclosed, it sparks curiosity about the fund’s confidence in the future potential of Ethereum. As the market continues to observe bearish tendencies, only an upward shift in demand could potentially lift Ethereum from its current consolidation phase and determine its future trajectory.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.