Due to its large developer community, wide usage, and essential role in decentralized finance (defi) and other blockchain applications, ethereum continues to occupy a unique place in the market.
Thanks to bitcoin (btc)'s recent jump above $44,000, global crypto markets have been experiencing bullish momentum, which has positively impacted the price of ethereum (eth).
As a result, a large number of early investors may attempt to sell their Ether holdings for profits. A large whale had begun to unload its reserves.
ethereum whale: change in appetite
The whale, which currently holds 10,000 eth worth over $23 million in total, has begun dumping its eth. The whale has moved a significant deposit of 3,700 eth to the Binance platform, which is valued at $8.72 million.
Now, what does this mean for the ethereum ocean? Well, the actions of this big whale could go in two directions: The positive side is that if the whale's selling strategy brings more stability and balance to ethereum prices, it could be a good thing for the entire ethereum market. It's as if the whale is creating calmer waters for everyone sailing in the sea of cryptocurrencies.
The whale, who was good at swing trading. $ethstarted selling $eth.
Deposited 3,700 $eth($8.72 million) to #Binance 1 hour ago and currently has 10K $eth($23.58 million).https://t.co/TBXBbfkV1N pic.twitter.com/scbxXyJeno
— Lookonchain (@lookonchain) December 9, 2023
On the other hand, the big whale's movements with ethereum could create some stormy waves. If the selloff leads to chaos, causing prices to swing wildly and making the market less predictable, that could be bad news.
However, the overall eth price momentum was not affected by the sell-offs. At the time of writing, data from Coingecko indicates that eth was trading at $2,350, up 4.1% from the previous day and up 5.5% from the previous week.
ETHUSD currently trading at $2,236.7 territory. Chart: TradingView.com
Even with the current bullish trend, there are concerns about the possible impact of whale selling pressure on the price of cryptocurrencies. crypto researcher Ali Martinez claims that as soon as ethereum surpassed $2,300, whales started making profits.
As ethereum?src=hash&ref_src=twsrc%5Etfw” target=”_blank” rel=”noopener nofollow”>#ethereum surpassed $2,300, $eth whales began to record profits. This increase in selling pressure could soon begin to affect the eth?src=hash&ref_src=twsrc%5Etfw” target=”_blank” rel=”noopener nofollow”>#eth price. pic.twitter.com/sdrvT2vcCe
—Ali (@ali_charts) December 10, 2023
The influence of whales on the future of ethereum
In the coming weeks, the impact of selling by large holders could significantly reduce the price of eth. According to Martinez, a bearish scenario for the cryptocurrency would see it retest the $1,500 support level and take eth as low as $1,400 over the course of the next two months due to persistent selling pressure.
Meanwhile, Lookonchain's study reveals significant changes in both buying and selling profiles when looking at the recent actions of whales on the ethereum blockchain.
who is buying $eth and who is selling $eth recently?
Are there any SmartMoneys with a high win rate that are good at swing trading? $eth that can follow your operations?
1/
Here is a thread. pic.twitter.com/BfmvO1Zfw9
— Lookonchain (@lookonchain) December 8, 2023
Hashkey wallet, one of the collector wallets, removed a significant amount of 16,838 eth (around $38 million) over the course of the last three days while simultaneously depositing stablecoins on OKX and Binance since December 5. The whale address “0x8652” made another noteworthy withdrawal. , withdrawing 22,153 eth (or around $50 million) from Binance since November 29.
In the world of ethereum big players, as we keep an eye on these powerful whales, there is one question on everyone's mind: Is ethereum losing popularity? The movements of these big players make us wonder about the future of eth.
Featured image from Freepik
