Over the past week, Ethereum (ETH) has experienced a surge of over 14%, reaching a price of $2,641, with potential to hit $2,769 next. Meanwhile, Bitcoin bulls are striving to maintain a position above $62K.
Historically, when Bitcoin encounters resistance, it often signals a growing interest in alternative cryptocurrencies.
However, recent actions by a prominent ETH investor, known as a “diamond hand” whale, who moved 15K ETH to a major exchange, have raised concerns among market participants.
Anxiety Spreads Among ETH Large Investors
An analysis of the data indicates that the group of whales holding between 100 and 1K ETH has steadily decreased since reaching its peak earlier in 2021, while other investors have shown optimism about future profits.
Nevertheless, recent reports reveal that an unidentified whale liquidated $38.4 million worth of ETH on Kraken, a move that has surprised many given their reputation as a long-term holder.
Understandably, this large-scale sell-off has created unease among stakeholders, potentially leading to downward pressure on ETH’s price, possibly dipping below $2,600.
In such circumstances, the most common reaction from investors is to attempt to break even, a tactic that this whale seems to have pursued as well.
Grasping the Current Strategy to Counter Market Pressure
Currently, ETH bulls are in a battle to protect the $2.6K support level amidst the selling pressure. In case of a retest, a bearish reversal might ensue.
If the price drops, around 4 million addresses holding approximately $8 million worth of ETH could face losses.
Examining the daily price chart, ETH last peaked at $2,700 on September 23rd, marking a critical resistance level that was tested previously in mid-August before the bears pushed the price below $2.2K.
Prior to a potential similar scenario alongside Bitcoin’s consolidation below $64K, the whale decided to close its position to break even.
If other whales choose to follow suit, additional stakeholders may end up at a loss, triggering a bearish cycle that could prevent the bulls from surpassing the $2,700 mark.
Bulls Regain Authority in the Market
Despite the whale’s actions impeding a direct breakout opportunity, investors are preparing for a bullish reversal, as illustrated in the provided chart.
An increase in net outflows suggests a probable correction where investors are actively trying to counteract the selling pressure by accumulating more ETH.
If this trend persists, a breakthrough above $2.7K could be on the horizon, though monitoring whale activities remains crucial. On the contrary, if this momentum is short-lived, a fallback to $2.2K may become more likely.