Ethereum Whales Trigger Selling Spree: Will Ether Price Plummet?
Ethereum (ETH) has faced challenges in keeping up with other prominent altcoins like Solana. Despite gaining attention from Wall Street in the form of exchange-traded funds (ETFs), ETH has struggled to achieve significant price increases. Over the past year, ETH has only seen a 52% price uptick, while Solana, its main competitor, has surged by over 600%.
This lagging performance of Ethereum seems to be affecting the confidence of large investors, known as whales, in the ETH market. The Ethereum Foundation, a major ETH holder, has been actively selling off its ETH holdings. In a recent transaction, the foundation transferred 35,000 ETH worth $94 million to the Kraken exchange. Such sell-offs by the foundation have historically influenced price volatility, leading some traders to speculate on potential market peaks or troughs.
Notably, a significant whale recently deposited 25,000 ETH, valued at almost $74 million, into exchanges. Data from Santiment reveals a notable decrease in the number of addresses holding between 10,000 and 100,000 ETH since early July. The accumulation of ETH by whales typically supports price appreciation by boosting demand and limiting supply. The recent selling activities have disrupted this balance in the market.
The outflows from Spot Ethereum ETFs further highlight weakening interest in ETH. These products have been experiencing continuous outflows since mid-August. Similarly, inflows into the BlackRock Ethereum ETF have considerably diminished, despite the product expanding its availability to Brazil. The BlackRock Ethereum ETF was introduced on the Brazilian Stock Exchange on August 28.
At the time of writing, ETH was trading at $2,496, reflecting a more than 4% decline in 24 hours. Despite this dip, Ethereum is displaying some positive indicators. Notably, the amount of ETH held on exchanges has reached a record low, suggesting a potential price surge. The Relative Strength Index (RSI) indicates that sellers have been impeding ETH’s price growth. If ETH fails to maintain support at $2,490, it could experience a further decline towards the $2,300 level. Conversely, a resurgence in buyer activity could propel ETH towards $2,800.
In conclusion, Ethereum’s recent struggles in price performance, coupled with the actions of whales and market indicators, suggest a period of uncertainty for the cryptocurrency. Traders and investors are closely monitoring these developments to gauge the future direction of ETH’s value.
