In a dramatic surge over the past 48 hours, Bitcoin [BTC] reached a historic high of $75,000, sending ripples through the cryptocurrency market and boosting several altcoins, including Ethereum [ETH]. Following BTC’s spike, ETH also experienced a sharp uptrend, reaching its highest point in three months. However, the rally has also led to significant profit-taking among Ethereum’s long-term holders, sparking concerns over potential downward pressure on the market.
Ethereum Whales Dump Holdings Amid Price Rally
According to recent data from SpotonChain, long-dormant Ethereum whales have taken advantage of the price rally to cash in. In the last 24 hours, three prominent ETH holders moved their tokens to exchanges, signaling a likely intent to sell. Two of these whales unloaded a combined 33,701 ETH, valued at approximately $89.72 million, contributing to a 13.75% surge in Ethereum’s price charts.
One particularly notable whale, involved in Ethereum’s initial coin offering (ICO), transferred 25,000 ETH (worth $2,627 per token) to Kraken, leaving a balance of 64,450 ETH. Another whale, inactive for over eight years, re-entered the market to sell 8,701 ETH at $2,764 per token, generating a substantial profit of $30.48 million while retaining a remaining 2,304 ETH. Following suit, a third whale holding 12,001 ETH ($34.1 million in value) ended an eight-year dormancy and began selling on-chain.
Increased Whale Activity Raises Fears of Market Correction
The return of these long-term Ethereum holders has raised concerns of a potential market correction. Large inflows of ETH to exchanges often lead to selling pressure, which can impact prices negatively. Analysis from AMBCrypto shows a recent exponential surge in ETH deposits into exchanges, indicating that many investors may be preparing to liquidate their holdings. Ethereum’s exchange supply ratio has spiked significantly, suggesting increased sell pressure that could destabilize ETH’s price.
ETH’s inflow volume has also surged dramatically, rising from a weekly low of 306,020k to 1.07 million. This increase implies that many holders are taking advantage of the recent price recovery to lock in gains, further heightening the risk of a price pullback.
What’s Next for Ethereum?
Currently trading at $2,804, Ethereum has posted gains of 8.11% in the last 24 hours and 6.31% over the week. This momentum could push ETH to test the $3,000 resistance level if bullish sentiment holds. However, for the uptrend to persist, the market must absorb the latest whale sales without triggering a broader sell-off.
If these significant sell-offs by whales do put pressure on the market, Ethereum’s price could face a correction. Should this selling activity reflect on price charts, ETH may retrace to support levels around $2,670 before attempting another uptrend.
With Ethereum hovering at a critical juncture, investors are closely monitoring whale movements and exchange inflows. If the market successfully absorbs these sell-offs, Ethereum could consolidate its recent gains and continue its upward trajectory. However, the increased selling pressure from large holders leaves ETH vulnerable to short-term volatility as it navigates this delicate balance between bullish momentum and profit-taking pressures.
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.
About The Author
