An influential Ethereum whale, holding an immense 398,891 ETH valued at roughly $1.28 billion, has initiated a significant sell-off, raising market concerns. Since November 7, this whale has sold 46,853 ETH, converting approximately $138 million into USDC for $2,920 per ETH. In the latest transaction, the whale moved 12,886 ETH, valued at around $41.24 million, to an exchange wallet, likely for further sale. Despite these sales, the whale still holds 352,036 ETH, worth approximately $1.27 billion.
Also Read: Sharp Decline in Bitcoin and Ethereum Whale Transactions Sparks Market Speculation
Large-Scale Sell-Offs May Signal Price Resistance
The whale’s selling comes as Ethereum has reached $3,198, sparking speculation that this holder may be capitalizing on recent high prices. This activity suggests that $2,920 may work as a new level of resistance that may affect short-term dynamics in one way or another. In the past, responses could be elicited by major sell-offs by large holders since other investors often track large investors to earn profits or avoid losses.
Source: CoinMarketcap
Big sales have in the past set a trend signifying a shift by other, perhaps smaller traders, who may follow similar tactics to safeguard profits or avoid further losses. It can also put additional pressure on Ethereum’s price through a drop as other whales decide to do the same.
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Influences by large traders are well-known facts in markets, primarily in the volatile sphere of cryptocurrencies. Now, investors and analysts are paying attention to Ethereum’s price movement, including the $2,920, as a resistance level. If a whale continues to sell, it could attest to how huge purchasers or sellers can sway the market in their direction.
Ultimately, while Ethereum has recently experienced price growth, the actions of this large whale have introduced new concerns. With potential resistance around $2,920, investors carefully observe whether the recent price gains will hold or if further sell-offs will trigger a short-term downturn.
Also Read: Vitalik Buterin Introduces “The Splurge” to Revamp Ethereum’s Capabilities
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.