A massive sell-off by Ethereum whales has sent shockwaves through the crypto market, with analysts fearing a potential bearish trend in ETH price.
While whale token dumps are usually indicative of an imminent downtrend, the community remains nervous. Is this 63,000 ETH sell-off a sign of a larger market trend or just a temporary correction? Let’s dive into the details and explore what this means for the future of Ethereum.
Ethereum Whales Take Profit with Massive ETH Sell-off: Know Details
In a recent revelation, crypto analyst Ali Martinez unveiled an enormous whale activity involving Ethereum (ETH). The analyst uncovered a large-scale ETH sell-off of about 63,000 tokens over a period of 48 hours.
The whale activity reflects a broader market trend where large holders capitalize on the recent price surges. Many investors are seizing this opportunity to lock in profits as the crypto market is recovering from its bearish phase.
As reported by EmberCN, an Ethereum whale, who had sold their 15,000 ETH on April 22, liquidated the remaining holding of 35,754 ETH at $1,793 on April 23. These increasing whale moves indicate an impending ETH price crash.
Is ETH Price Falling to $1,300?
Typically, market trends suggest that increased pumps (buying activity) can drive prices up, while large dumps (sell-offs) can lead to price declines. Here, as Ethereum whales are capitalizing on the recent ETH price uptick, it is expected to have a negative impact on the altcoin’s value.
In addition, technical analysis further strengthens this bearish outlook. As pointed out by market expert Robert Mercer, the ETH price broke the bearish pennant pattern, suggesting a potential continuation of the downtrend.
Notably, this pattern typically forms after a sharp decline, followed by a brief consolidation phase. With the price now breaking below the pennant’s support, it could trigger further selling pressure, potentially driving the price down to $1300 or lower, depending on market conditions.
At press time, Ethereum is trading at $1,803, up 1.66%. Over the past seven days, ETH experienced a massive increase of 12% despite a 10% decline in a month. As CoinGape recently reported, a 4% drop in Ethereum’s price to $1,731 would trigger the liquidation of approximately $973 million in long positions.
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