During the last 48 hours, the cryptocurrency market witnessed a significant surge, leading Bitcoin [BTC] to achieve a new all-time high of $75K. This surge also propelled some alternative coins to reach unprecedented levels.
Ethereum [ETH] hit a peak not seen in three months, presenting an opportunity for profit-taking. Consequently, many long-standing and inactive large holders have begun selling off their assets to capitalize on the gains.
Sudden Selling by Long-Term Ethereum Holders
Recent data from SpotonChain indicates that three major ETH holders have initiated a selling spree following the rapid price increase in the past 24 hours.
Two of these holders offloaded a total of 33,701 ETH, valued at $89.72 million, coinciding with a 13.75% spike in Ethereum’s price.
In a significant move, the first ICO whale transferred 25,000 ETH, worth $2,627 each, to Kraken, retaining 64,450 ETH in their possession.
Another dormant whale emerged after an absence of eight and a half years to sell 8,701 ETH in exchange for 24.05 USDC per token, leaving behind assets worth $6.48 million and generating profits amounting to $30.48 million.
Subsequent to these substantial sales, a third Ethereum whale, holding 12,001 ETH valued at $34.1 million, broke an eight-year silence to start selling on the market.
The increased activity from these whales has prompted concerns regarding potential sell-offs that could lead to a correction in ETH prices. The influx of large sums into exchanges and the sale by these major holders often exerts selling pressure, impacting prices adversely.
Effects on Ethereum’s Price Trends
An analysis by CryptoCrypto reveals a significant rise in Ethereum deposits on exchanges, indicating an increase in supply that poses a threat to price stability.
Notably, the ratio of Ethereum supply on exchanges has surged in the last week, suggesting that investors are moving their tokens to exchanges in preparation for selling, thereby creating downward pressure on prices.
In addition, the inflow volume of Ethereum has spiked from 306,020k to 1.07 million over the previous week, signaling investor readiness to capitalize on the price recovery by selling.
Future Prospects for Ethereum
Ethereum has demonstrated a robust uptrend in recent days, reflecting a positive trend in the market.
Presently, Ethereum is valued at $2804, indicating an 8.11% increase over 24 hours and a 6.31% rise on a weekly basis.
The recent surge has propelled Ethereum to reach a three-month high, signaling strong upward momentum.
If the market trend continues to be bullish, Ethereum could potentially achieve further gains, aiming to breach the $3000 resistance level.
Therefore, for the upward trajectory to persist, it is crucial for the market to absorb the recent whale sell-offs without experiencing significant losses.
However, if the impact of these recent whale transactions results in adverse consequences, a market correction may precede another attempt at an uptrend for the altcoin.
Should the price charts reflect the effects of these sell-offs, Ethereum might witness a decline to $2670.