Ethereum (ETH) has been caught in a price tug-of-war this quarter, with a combination of factors contributing to its volatility. A newly unearthed Ethereum ICO whale has been making waves, offloading a substantial portion of their 1 million ETH holdings. Simultaneously, the much-anticipated launch of spot Ethereum ETFs in the US has failed to ignite a sustained rally.
The mysterious whale, holding onto their Ethereum since the ICO days when it was worth a mere $0.31, has recently transferred a staggering 48,500 ETH to the OKX exchange. This move alone represents a potential sell-off of around $154 million, a mind-boggling 1,024,416% return on investment. With 15,600 ETH still in the wallet, the market is on edge, anticipating further selling pressure.
Adding to the bearish sentiment, investment firm Block Tower Capital has also unloaded 9,232 ETH, worth approximately $25 million. Despite this selling pressure from whales and institutions, a counter-trend has emerged in the form of declining Ethereum exchange reserves. Data from CryptoQuant reveals a steady decrease in ETH held on exchanges since January, suggesting potential accumulation by larger investors.
Also Read: Ethereum Network Booms As ETHE Outflows Dry Up
However, the market remains cautious. Ethereum’s price has struggled to break above the crucial $2,750 resistance level, forming an ascending triangle pattern on the four-hour chart. A decisive close above this point could signal a retest of the $3,000 mark. On the other hand, a breakdown below $2,500 could open the door for a retest of the $2,350 to $2,200 support zone.
As the market grapples with the impact of whale selling and the uncertain price action, investors are closely monitoring these developments for clues on Ethereum’s next move. The interplay between large-scale selling and potential accumulation will be a key factor in determining whether Ethereum can regain its bullish momentum or succumb to further downward pressure.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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