In recent times, there has been a surge in the activity of Ethereum (ETH) whales on the blockchain, indicating that these whales are selling large amounts of Ethereum. This has raised concerns about their long-term confidence in the cryptocurrency. One notable transaction involved a whale who had purchased Ethereum at $1,890 last year and then transferred approximately 12,906 ETH, worth around $24.5 million, from Binance to Lido.
The same investor has now withdrawn 7,000 ETH from Lido and reinvested it in Binance, earning an impressive profit of over $16 million in a volatile market. These movements also suggest a decrease in the number of large transactions, which aligns with the fluctuations in Ethereum prices.
Charts depicting the volume of large transactions reveal a correlation with periods of price instability. Ethereum’s relatively underwhelming performance compared to other cryptocurrencies like XRP and Solana could potentially dampen the motivation of whales to seek profits. If Ethereum continues to lag behind in the rapidly evolving crypto landscape, major holders may reevaluate their positions. These actions could serve as precursors to significant adjustments that might greatly influence market sentiment.
Furthermore, measurements conducted by IntoTheBlock on the blockchain indicate a significant correlation between Ethereum prices and the number of large transactions. This highlights the impact of high transaction volumes on Ethereum’s price dynamics. The decline in transaction volume observed in April corresponds to a drop in Ethereum’s price, indicating effective selling pressure from whales.
It is important to note that a single sale does not spell doom for Ethereum. However, there are concerns regarding the sustainability of the current movements by whales. The Ethereum community is closely monitoring the activities of these influential players.
As of the time of writing, Ethereum’s price has surpassed the $3,200 resistance level, reaching $3,221 on the cryptocurrency exchange Binance. While Ethereum’s price tends to move in tandem with Bitcoin, it also experiences steeper declines compared to BTC. The last time Ethereum crossed the $3,200 mark was on February 27, when Bitcoin was priced at $62,000.
Disclaimer: The information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.
